This is via a HSBC note discussing global fixed interest markets. I've pulled out a few bits that are pertinent to ECB President Draghi, and also touches on the Federal Reserve.
- The Fed may be in tightening mode, but in EM and Europe policy easing remains the theme
- Although the markets will listen attentively for policy clues from Jackson Hole later this week, ECB President Mario Draghi's remarks at Sintra may have already shown his hand, and perhaps divergence from the ECB Governing Council's line should not be expected
- the reduction in the Fed's balance sheet is more about being less accommodative rather than outright tightening
- a reduction in the Fed balance sheet being different from tightening. There's a parallel here to the ECB, where Mr Draghi is keen that the market doesn't view any moderation in the pace of QE as hawkish. We have to make a clear distinction between the direction that the Fed is going and its actual policy stance.
I've bolded for emphasis - i.e. HSBC say Fed and ECB b/s reduction is not tightening ("about being less accommodative rather than outright tightening")
Specifically on what to expect from Draghi - HSBC looking for no departure from the official European Central Bank line
