In the wake of a whiplashing economic outlook and a basket of a malevolent corporate earnings report, in particular, in the manufacturing industry, the European Central Bank (ECB) has been considering the option of injecting new money mostly as low-tax debts, as a financial stimulus.
On Friday, the 15th of February, 2019, at an event in New York, the ECB director, Benoit Coeure said, “That is possible. We discuss that. There could be scope for another TLTRO,” referring to that new financial stimulus.
However, so far, no member of the Federal Reserve, a six-member management committee, made a clear statement regarding this start-up aids. At that event, the ECB director also pointed out that the economic slowdown had been buzzing its sirens much-louder in the eurozone area since France had already been facing a recession risk, and Germany narrowly avoided a recession last week.
Coeure also signaled a halt in the interest rate after a cascade of weak economic data. Echoing the leads of the ECB director, growth in the eurozone currency area had only been 0.2 percent up in the last quarter of 2018, although ECB chief Mario Draghi appeared to be upbeat last week, as he claimed a Eurozone recession was highly unlikely.