Struggle in the ECB! Video outlook (german)

Recent statements show that there is a struggle for direction within the ECB – there is a front position between the ECB members from the northern countries of the euro zone and the Draghi group (southern countries of the euro zone). Draghi, who met Merkel yesterday, can only unpack the bazooka for the next ECB meeting if the opposition within the ECB is not too big – and Merkel gives the green light. There is also disagreement in the Fed, as recent statements by Bullard and Rosengren show. All this suggests that both the ECB and the Fed will be taking a compromise line (disappointing the high expectations of the markets?): both are likely to cut interest rates at their September meetings, but not take a big step (QE at the ECB and 0.5% cut at the Fed).

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