ECB Gets Creative. Will Reduce Asset Purchases While Buying More Assets
The ECB got right to the point in the statement accompanying the bank's final policy meeting of 2021. But to say the "devil was in the details" would be to materially understate the case.
"The Governing Council judges that the progress on economic recovery and towards its medium-term inflation target permits a step-by-step reduction in the pace of its asset purchases over the coming quarters," the bank said, in the very first line.
It's worth briefly recapitulating in order to frame December's
And here I thought Fred Astair had passed from this earthly realm. Some kind of tap dancing in the EU.
Higher inflation and faster growth good! Fed and central banks that observe slow steady tightening will be fine. If they go too fast they will almost certainly be whipsawed by collapsing growth. Its all good- except for the supply chain which is out of the FOMC and other central banks control- unless we want a recession to clear it up.