interest rates, non-standard measures are disconnected
Trichet refuses to say if the ECB would withdraw non-standard measures before raising rates…He says the two are disconnected. Non-standard measures are meant to improve the transmission mechanism for monetary policy, he says.
One reporter basically nailed him, implicitly making the point that the ECB is conducting an under the table bailout…
Trichet has ended the press conference, at long last…

AUTOREFRESH 













Commods and Stocks not flying wrt USD weakness, wonder if we should read more into this, eg topping out of stocks, commods possibly?
These two ARE connected. The Eonia (interbank rate) is way below the ECB’s refi rate, b/c the ECB is flooding the market with cash.
The ECB must remain in super accommodative mode, unless they want to provoke a systemic banking crisis.
Spot on, Tom…great point