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Investors Signal Draghi Is Running Out of Time and Ammunition

  • ECB president pledged his determination to revive inflation
  • Markets have been more responsive to similar promises by Fed
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ECB's Draghi Talks Tough on Stimulus as Growth Weakens: Full Briefing
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Mario Draghi’s insistence that he’s determined to revive euro-zone inflation with interest-rate cuts and renewed bond purchases if needed isn’t convincing investors.

The European Central Bank president talked a tough game on Thursday after policy makers extended their pledge to keep borrowing costs at record lows and announced more cheap loans to banks. Yet traders pared bets on a rate cut, the yield curve for German bonds flattened -- a sign of worsening economic prospects -- and a market measure of inflation expectations closed near the lowest on record.