Markets jump as Draghi hints at more eurozone stimulus

EUR to USD daily

EUR to USD daily

"In the absence of improvement, such that the sustained return of inflation to our aim is threatened, additional stimulus will be required", he said. However, Draghi's Tuesday remarks immediately boosted euro inflation against the dollar by up to 0.3%. The US central bank has been a target of Trump's wrath for the better part of a year because the president views the Fed's policy rate as too high.

Draghi warned that trade disputes were among factors affecting growth in his speech advocating potential stimulus.

It's the latest dovish comment from the Governing Council, as it grapples with an economic slowdown and an inflation rate that remains below its goal. Another measure is "quantitative easing" (QE), which sees European Central Bank buying government and corporate debt.

Mario Draghi also dismissed market concerns that asset purchases lacked potency as the European Central Bank was coming up against its self-imposed limits, including a rule that prevents the European Central Bank from buying more than one-third of a particular country's debt.

"[We] will use all the flexibility within our mandate to fulfill our mandate - and we will do so again to answer any challenges to price stability in the future", Draghi said on Tuesday.

He added that the ECB would use the "coming weeks" to study its options, suggesting that action from the bank may come sooner rather than later.

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The economy was on the president's mind as he prepares to formally launch his re-election bid in Florida this evening and as the Federal Reserve Board is set to meet to discuss an interest rate cut for the United States.

President Trump often brags about USA economic performance and argues no other president but himself could keep the economy strong. The president accused Draghi of trying to weaken the euro to gain an unfair advantage in global trade.

Trump responded Tuesday morning with a tweet criticizing the European Central Bank and China, who he said "have been getting away with this for years".

Draghi soon fired back at the U.S. president, rejecting the accusations. "Our mandate is price stability".

G-20 finance ministers and central-bank governors have pledged to "refrain from competitive devaluations and will not target our exchange rates for competitive purposes". They have been getting away with this for years, along with China and others.

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