BlackRock's chief investment officer of global fixed-income Rick Rieder, writing a piece in the Financial Times.
(gated)
He argues unemployment, particularly youth unemployment, in Europe is still unacceptably too high and recommends further QE from the European Central Bank, specifically to include equity investments in European companies
- doing so would improve private sector growth prospects
- Says that the policy of abnormally low-for-long interest rates has caused , and continues to cause, damage to the banking, insurance and pension systems, the hubs of financing and investment
- The ECB should consider expanding QE to include equity investments to lower the cost of equity for European enterprises.
More at that link above.
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The ECB meet Thursday this week, July 26. There are no indications the Bank is ready to adopt such a policy.
