Mario Draghi Demands a Lot of Trust
Investors will want to believe the more dovish message from the ECB chief’s press conference. But his departure makes it very hard to be certain.
We all want to believe that the ECB will ride to the euro's rescue again. But with Mario Draghi halfway out the door, no one can really be sure.
Photographer: Bloomberg/BloombergThere’s a question that anyone who watched Mario Draghi’s press conference on Thursday must ask themselves: Should we look at the European Central Bank’s slightly guarded official position or listen to the more dovish messages from the president?
The answer will determine one’s confidence about the central bank’s ability to fight a new euro zone slowdown. It might also influence whether that downturn happens, given that any fears about a lack of action from the ECB will weigh on investor sentiment and, as a result, on economic activity.