Vanguard's Jumana Saleheen: How the Fed may influence the ECB's course

ECB expected to lower rates

The ECB is preparing to lower its interest rates. As a result, monetary policies in Europe and the US would be diverging with major consequences for the financial markets.

All eyes are on Frankfurt. The central bankers of the European Central Bank are meeting in the German financial centre today (6 June) to discuss the future course of monetary policy. The majority of observers assume that the ECB will initiate a downward turn in interest rates. However, it faces the problem of loosening monetary policy before the US Federal Reserve, the world's most important central bank. The Fed is currently making no attempt to quickly follow the ECB. How is potential central bank monetary policy divergence affecting asset allocation? Instead, statements ...