These guys just take the same speech out of the draw and recycle it no matter what the backdrop. Main board member Bini-Smaghi is on the wires talking about improving mid-term inflation expectations while expressing concerns about long-term expectations. As Keynes said, in the long-run, we’re all dead.
Markets expect both the ECB and Fed to cut soon, with the Fed taking the first move. The dollar is back on the march as EUR/USD slides below 1.3800. Poor US data is backed in the cake while flows and the growing European banking crisis are relatively fresh factors for the market, as are hopes for passage of the TARP package today.