Escala Partners' Murphy Says ECB Decision a Positive for Europe

Mario Draghi announced the end of quantitative easing (QE) with dovish guidance on interest rates, signaling a modest tightening approach. The strategy aims to taper QE slowly while maintaining pressure on the US dollar, benefiting European exporters. Draghi discussed optionality in rate hikes for 2019, acknowledging a prolonged soft patch. The US growth is expected to slow, with tax cut benefits receding. The US yield curve may invert, indicating potential softening growth, while the US dollar remains strong.

What is the expected impact of interest rate hikes in the US on the market?

What does the potential inversion of the yield curve indicate about US growth?