August 2014

While the Federal Reserve has laid out specific plans to end their quantitative easing (QE) program, a new season of QE may be getting ready to kick-off across the pond. From Reuters:
The euro fell broadly on Wednesday, hitting a 19-month low against the Swiss franc, as speculation that the European Central Bank (ECB) will resort to quantitative easing was fueled by yet more bad news from the eurozone…ECB chief Mario Draghi fueled speculation that monetary policy would be further loosened in the eurozone over the weekend by saying the central bank would use “all the available instruments” to deal with the threat of deflation at the U.S. Federal Reserve’s annual conference in Jackson Hole. Developments on Wednesday only worsened the picture for the eurozone: data showed German consumer morale fell for the first time in 1-1/2 years, while Italy’s economy minister said the country must cut its growth forecast.