Economics
Central Bank Crusade to Spark Inflation Isn't Convincing Traders
- Long-term price expectations remain muted despite dovish turn
- Fed, ECB among those to open door to stimulus this week
The European Central Bank (ECB) headquarters in Frankfurt, Germany.
Photographer: Krisztian Bocsi/BloombergThis article is for subscribers only.
The dovish turn by global central banks is failing to persuade investors that policy makers have what it takes to ignite inflation.
Spurred by flagging global growth and renewed trade frictions, the Federal Reserve and European Central Bank both flashed new willingness this week to deliver stimulus to their respective economies if necessary. Their counterparts in India and Australia went a step further and cut interest rates.