Monetary outlook

  • The next couple of weeks see major decisions at both the Federal Reserve and the European Central Bank.
  • The list of ECB policymakers pushing back against a resumption of asset purchases is growing daily, with Francois Villeroy de Galhau the latest to add his skeptical voice to the choir.
  • Incoming-President Christine Lagarde faced lawmakers in Brussels this morning and pledged to act with “agility” when she takes charge on Nov. 1.
  • From the Federal Reserve, there have been mixed messages, with St. Louis Fed President James Bullard saying an aggressive 50 basis-point reduction is warranted, while Federal Reserve Bank of Boston President Eric Rosengren is unconvinced that the bank needs to cut rates at all at the upcoming meeting.

(Source: Bloomberg)