Sep 12, 2019

European Central Bank launching stimulus program to shore up economy

Mario Draghi leaving an ECB press conference in July. (Photo: Arne Dedert/Picture Alliance via Getty Images)

The European Central Bank announced a series of measures Thursday in an effort to help worsening economic conditions and low inflation in the euro zone, including cutting interest rates by 10 basis points to negative 0.50% (signaling even lower rates may be coming) and re-starting its bond-buying program "as long as necessary."

Why it matters: This is one of the most contentious and important policy decisions for outgoing ECB president Mario Draghi, who is facing doubts from economists about the effects of moving rates further below zero. His successor is vowing to look at the “costs and benefits“ of negative rates, while others are critical that re-starting quantitative easing is too aggressive.

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ECB head Mario Draghi's time is running out

Illustration: Lazaro Gamio/Axios

Mario Draghi's penultimate policy meeting as European Central Bank president was a bit like watching a past-his-prime boxer struggling through the late rounds of a fight. "Dovish" Draghi still has the moves, but it's obvious the game has passed him by and a new era has begun.

Driving the news: Draghi, whose term is set to expire at the end of October, not only cut the ECB's already negative deposit rate to -0.5%, he also announced additional stimulus of 20 billion euros a month to continue indefinitely and lowered the central bank's inflation and growth forecasts.

Go deeperArrowSep 13, 2019

The divided Fed is losing investors' faith

Illustration: Aïda Amer/Axios

The Fed is doing its best to prop up the U.S. economy in the face of possible economic turbulence, but it's beginning to look like a rudderless ship and it's fast losing the confidence of investors.

Driving the news: The Fed's rate-setting committee cut U.S. interest rates 25 basis points as expected on Wednesday, but did so with 3 dissenting votes for the first time since 2016.

Go deeperArrowSep 19, 2019

The eurozone economy is getting worse

Data: Investing.com; Chart: Lazaro Gamio/Axios

European Central Bank President Mario Draghi and a spate of data releases from IHS Markit on Monday painted an incredibly somber picture of the economic situation in the eurozone.

Why it matters: The eurozone looks like it's headed for recession, if it isn't in one right now. And, as Draghi pointed out, there's little on the horizon that gives much hope for the future.

Go deeperArrowSep 24, 2019