Mario Draghi’s Plan for Final Jolt of Stimulus Runs Into Opposition

European Central Bank President Mario Draghi hopes to end his eight-year term with a bang. Some fear it could conclude with a fizzle, The Wall Street Journal reported. In the run-up to his departure on Oct. 31, the central banker has signaled plans for a large, final burst of monetary stimulus to prop up a eurozone economy that is tottering under the pressure of trade tensions. But critical voices are multiplying, including a growing number from the ECB’s own 25-member rate-setting committee. Mr. Draghi’s critics say the eurozone economy isn’t weak enough to warrant aggressive new measures just a year after the ECB began phasing out its €2.6-trillion ($2.686 trillion) bond-buying program. Borrowing costs for households, businesses and governments are so low, they argue, that easier money will have little effect. Read more

Location