18 Sep 2015

What signal from the Fed? Should the ECB ease further?

Daniel Gros

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The Federal Reserve left rates unchanged at its closely-watched meeting on September 17th, although many had argued that the real economy data, especially on the labour market, would have justified an exit (from the zero interest policy). In this CEPS Commentary, Daniel Gros observes that no similar decision on exit is in sight in the euro area, despite the fact that some have argued that the ECB should consider further easing measures (pushing the deposit rate deeper into negative territory or increasing the size of its asset purchase programme).  He asks, in fact, whether further easing measures should be even discussed at this point.

Daniel Gros is Director of CEPS.