ECB mario draghi Markets

ECB Reiterates QE Infinity At Mario Draghi’s Final Meeting

Wave goodbye to Super Mario.

Wave goodbye to Super Mario.
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4 comments on “ECB Reiterates QE Infinity At Mario Draghi’s Final Meeting

  1. I hate to discount the machinations of the ECB, but what I’m really concerned about is the shift yesterday 10/23 of our FRB’s “non-QE” doubling of the repo buybacks to $120 billion/day. https://www.newyorkfed.org/markets/opolicy/operating_policy_191023. What’s the message here? Twisting Elizabeth Warren’s tail?

    • people are making too big a deal of that i think. why wouldn’t they upsize them? they had two oversubscribed term ops, and you’ve got pressure from bill auction settlements, etc. they’re going to upsize these things as needed until they get back to an abundant reserve regime with a buffer. you’ll probably see these adjustments all the time from now through January until all the TOMOs are eventually soaked up into POMOs

      • Also, remember those are separate from the securities bought for balance sheet growth. the O/N and term ops are for liquidity management purposes, to smooth things out until the POMOs have permanently increased the level of reserves. so they will, almost by definition, be lumpy.

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