BlackRock's Harrison Says Draghi Is in the ‘Hot Seat’

The transcript discusses the market's expectations regarding Janet Yellen's position on balance sheet reduction and inflation data. It highlights Mario Draghi's challenges with the euro's appreciation and the tapering of QE. The discussion explores Draghi's limited options and potential strategies to manage market perceptions and the euro's value.

What is the market's expectation regarding Janet Yellen's position on balance sheet reduction?

• It is expected to be accelerated to August.

• It is considered to be already planned for September.

• It is expected to be delayed until next year.

• It is uncertain and not yet decided.

What is Mario Draghi's main concern regarding the euro?

• Its stability in the global market.

• Its appreciation affecting core inflation.

• Its impact on trade with Asia.

• Its depreciation against the dollar.

How does the euro's appreciation impact the eurozone according to the discussion?

• It increases export competitiveness.

• It boosts economic growth.

• It reduces core inflation.

• It stabilizes the labor market.

What strategy might Mario Draghi use to address the euro's strength?

• Increase interest rates immediately.

• Implement new quantitative easing measures.

• Provide forward guidance on rates.

• Announce a currency devaluation.

What is one of the challenges Draghi faces in managing the euro's value?

• Lack of support from the Governing Council.

• Insufficient data on inflation trends.

• Limited room for maneuvering with QE.

• Pressure from the US Federal Reserve.