The ECB and its forecasts
The ECB has increased the size of the specific pandemic plan. The PEPP (Pandemic Emergency Purchase Program) which amount was 750 billion usable until December 2020 is increased to 1350…
Philippe Waechter's blog
The ECB is committed for 750 billion against the epidemic.
The ECB puts itself in front of the States which will sharply increase their public deficit in order to fight the epidemic. The program will thus reduce financial fragmentation and…
Again , the Federal Reserve slashes its interest rate
The risk associated with coronavirus has provoked the state of emergency declared by the White House, forcing the Fed to collapse its intervention rate. The fiscal policy will have to…
The global coming recession (What to expect this week)
The supply value chain is broken as a consequence of the Chinese containment. The recovery is slow and the epidemic is not over. Therefore, the global production will decrease. That’s…
The Federal Reserve will continue to drop its benchmark rate
Distortions on the US yield curve will force the Fed to reduce its rate at least one more time All the US rates are down, reaching unprecedented levels. Last Tuesday,…
The ECB will not follow the Federal Reserve
Will the ECB follow the Federal Reserve. Will it slash its main interest rates ? The answer is a clear no. The US 10 year interest rate dropped dramatically in…
Economic surveys (Markit, ISM), Capital goods orders in Germany, US employment, Chinese external trade Coming this week (March 2 – March 8) The impact of the coronavirus, US Interest rates – Central banks’ credibility at risk (What to keep in mind from last week)
Markit, ISM, US Employment Report, German Industrial Orders, Chinese External Trade but also US 10 year rate at its lowest and central banks’ credibility Highlights Markit Surveys in the manufacturing…
Governments against the euro zone
The ECB monetary policy became frankly accommodating only because Draghi had the perception that governments and the Commission would never let go on fiscal policy.
Will Christine Lagarde fall into the same trap as Draghi?
Will Christine Lagarde fall into the same trap as Draghi?