Monday Morning Outlook

The European Central Bank’s Crazy Negative Interest Rates!

The European Central Bank’s Crazy Negative Interest Rates! It’s time for Europe to recognize that neither negative interest rates nor quantitative easing has saved their economies.  By using negative rates, the ECB has been trying to punish banks into lending, and it hasn’t worked.  Worse, negative rates are, in effect, a tax on the financial system.  As a result, they undermine bank profitability and weaken the financial system. 

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Farewell to Data Dependence

Farewell to Data Dependence…comments made by Powell at the press conference after the meeting, suggested a 25 basis point rate cut was all but in the bag for the next meeting at the end of July. But with six weeks between June and July’s meetings and a full economic data cycle, what we have seen so far shows that – if the Fed really is data dependent – they shouldn’t cut rates.

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