News Release: Central Banks in U.S. and Europe Remain Oceans Apart on Strategies to Stimulate Economic Growth, Cambridge Chairman Says

The U.S. and its European trading partners remain oceans apart on strategies aimed at stimulating economic growth, an article posted on the Cambridge Realty Capital Co. website suggests.

“In recent weeks, central bankers in the U.S. have been more transparent in discussing a conditional timetable for the phase-out of programs aimed at keeping interest rates near historic lows,” said Cambridge Chairman Jeffrey A. Davis.

“Specifically, there’s been talk about phasing out the monetary policy known as quantitative easing, which has seen the Fed purchase billions of dollars worth of Treasury notes and other fixed-income securities in an effort to stimulate economic growth by driving interest rates lower,” he said.

In contrast, the European Central Bank appears to be a long way from following the U.S. Federal Reserve Board’s lead, he notes.

In a news report filed by the Associated Press (AP), European Central Bank President Mario Draghi is quoted as saying the ECB has no plans to change current monetary policies.

“The current ECB benchmark interest rate now sits at a record low 0.5 percent and economists expect the ECB to leave it there,” Davis said.

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