On December 8, Todd Mattina, Chief Economist and Strategist on the Mackenzie Asset Allocation Team, appeared on BNN to discuss the European Central Bank’s (ECB) decision to extend its bond-buying program to December 2017 and cut monthly bond purchases. He also discussed the impact of President-elect Donald Trump on the Canadian and U.S. economies.
Key Points
- Continued monetary stimulus is appropriate, but the ECB’s reduction was surprising given under lying weakness.
- The Eurozone is still growing faster than its long-run trend, which will keep it on course to eliminate its output gap over the coming years.
- Three things that will stand out in the first two years of Trump’s presidency are: the design of tax cuts and infrastructure programs; the impact of fiscal stimulus on the Fed and deregulation.
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