More stimulus measures expected
Mohamed A. El-Erian | 06 Sep 2019 00:30
Fearing market disruptions, both the European Central Bank (ECB) and the Federal Reserve Board (Fed) will most likely take more stimulus measures in September regardless of what their analyses tell them about the potential impact on the economy and financial assets.
That has implications for both future economic prosperity and medium-term financial stability, and it adds to the to-do list for policy makers and investors.
Markets expect central banks - not just in advanced economies but also in emerging markets - to go on a loosening tear, cutting more than 1,000 basis points in interest rates worldwide over the next year.
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