Kleintop Says No 'All Clear Yet' For ECB

The video discusses the current state of bond yields, particularly focusing on the low yields of 10-year bonds and the factors influencing them, such as inflation and wage growth in Europe. It highlights the European Central Bank's (ECB) cautious approach to tapering its Quantitative Easing (QE) program and the potential for future rate hikes. The ECB's strategy is influenced by economic data and market sentiment, with a focus on maintaining stability while considering future monetary policy adjustments.

What is the key issue discussed in the first section regarding the European economy?

• The need for wage growth and inflation

• The rise in bond yields

• The stability of the euro

• The decline in the labor market

How does the ECB plan to approach the tapering of its QE program?

• By increasing bond purchases

• Not at all

• Cautiously and slowly

• Aggressively and quickly

What might cause the ECB to reconsider its tapering path?

• A sharp move up in rates

• A rise in the euro

• A decrease in inflation

• A stable labor market

When are rate hikes by the ECB most likely to occur according to the final section?

• In 2020

• In late 2019

• In early 2019

• In 2018

What flexibility does the ECB have in its communication strategy?

• It can only be dovish

• It can adjust between hawkish and dovish

• It has no flexibility

• It can only be hawkish