• 851 days Will The ECB Continue To Hike Rates?
  • 852 days Forbes: Aramco Remains Largest Company In The Middle East
  • 854 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 1,253 days Could Crypto Overtake Traditional Investment?
  • 1,258 days Americans Still Quitting Jobs At Record Pace
  • 1,260 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 1,263 days Is The Dollar Too Strong?
  • 1,263 days Big Tech Disappoints Investors on Earnings Calls
  • 1,264 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 1,266 days China Is Quietly Trying To Distance Itself From Russia
  • 1,266 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 1,270 days Crypto Investors Won Big In 2021
  • 1,270 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 1,271 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 1,273 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 1,274 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 1,277 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 1,278 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 1,278 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 1,280 days Are NFTs About To Take Over Gaming?
Michael Pollaro

Michael Pollaro

Michael Pollaro is a retired Investment Banking professional, most recently Chief Operating Officer for the Bank's Cash Equity Trading Division. He is a passionate free…

Contact Author

  1. Home
  2. Markets
  3. Other

Central Bank Credibility, Now Here's a Bubble

Equity bulls, which nearly everyone is these days, received some supposed great news today from two of the world's most prominent central banks. First, with its next policy meeting less than two weeks away, European Central Bank (ECB) President Mario Draghi, speaking to the Euro Banking Congress in Frankfurt, said...

... We will do what we must to raise inflation and inflation expectations as fast as possible, as our price-stability mandate requires.

To which he added...

... If on its current trajectory our policy is not effective enough to achieve this, or further risks to the inflation outlook materialize, we would step up the pressure and broaden even more the channels through which we intervene, by altering accordingly the size, pace and composition of our purchases.

The market is interpreting Draghi's statements as a sign that the ECB is close to implementing a sovereign debt based QE program, maybe as early as its next policy meeting.

Continue reading the rest of the article here.

 

Back to homepage

Leave a comment

Leave a comment