September 12, 2019
So, they are back at it. And it's open-ended (no expiration).
The Fed had it's QE infinity (which ran for more than two-years). This is the ECB's version of QE infinity.
For the moment they have not changed the asset mix from their past asset purchases, which consists of corporate and sovereign bonds. Adding European equities would be the "bazooka." They didn't do it, yet.
Instead, Draghi and company are pushing politicians hard to back them up with fiscal stimulus. It hasn't worked to this point. But with Lagarde taking over in November, the idea is that she will have more influence over the EU bureaucrats.
Bottom line: We now officially have the Fed pointing south on monetary policy and the ECB and BOJ pumping liquidity into the global economy. And to be clear, this is all about managing the downside risk of an indefinite trade war!
Today, Trump may be setting the table. We had some positive headlines on the trade front – a goodwill offering from Trump to the Chinese. But the bigger news of the day: A Bloomberg report cited White House sources as saying a "limited trade agreement" is in the works.