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European Central Bank Chief Tamps Down Optimism

Thursday, September 5, 2013 - 7:10 PM
Mr. Draghi indicated that the bank’s Governing Council, which held its monthly monetary policy meeting on Thursday, had not ruled out further cuts in the benchmark interest rate.

European stocks rose and the dollar reached a six-week high against the euro while Mr. Draghi spoke, as investors took his words as a sign the bank would keep interest rates low.

On Thursday in Britain, which does not use the euro currency, the Bank of England also held interest rates at a record low, as policy makers there, too, were reluctant to celebrate tentative signs of an economic recovery.

This does make me leery that Chairman Bernanke may issue a statement similar to Mr. Draghi's and put the damper on Treasury issues maintaining their higher yields. It's as though these central bankers are persistent in their efforts to keep historically low interest rates in place for a very long time in the future,  regardless the good economic news. You don't think that's possible, do you? After all, it was recently announced how well the European and UK economies were doing.
ShorebreakShorebreak2,694 posts since
Apr 6, 2010
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