ECBs Mario Draghi Sees Deflation Risk

The video discusses the economic challenges in the eurozone, focusing on the European Central Bank's (ECB) potential actions, such as sovereign quantitative easing, and their uncertain impact on the economy. It highlights the structural issues in the eurozone and the need for increased bank lending. The video also reviews the US market's unexpected gains in 2014, with both stocks and bonds performing well. Looking ahead to 2015, it notes the optimistic market predictions and the possibility of the Federal Reserve raising interest rates, though the impact on the bond market remains uncertain.

What is one of the main challenges the ECB faces in addressing the eurozone's economic issues?

• Excessive government spending

• Strong economic growth

• Low bond yields

• High inflation rates

What was the unexpected outcome in the US markets in 2014?

• Decrease in asset prices

• Simultaneous rally in both stocks and bonds

• Decline in stock prices

• Increase in bond yields

What is the general expectation for the US stock market in 2015 according to strategists?

• Volatility without clear direction

• Significant decline

• Further gains

• Stagnation

What is a potential action the Federal Reserve might take in 2015?

• Lowering interest rates

• Raising interest rates

• Implementing new QE measures

• Reducing the balance sheet

What was the market's expectation regarding the Federal Reserve's rate hike in 2014?

• Frequent rate hikes

• No rate hike

• Delayed rate hike

• Immediate rate hike