Germany Challenges ECB’s Bond-Buying Program

On Wednesday, September 28th, several members of the German parliament told European Central Bank (ECB) President Mario Draghi that the bank's bond-buying program has gone too far, according to a recent Reuters article.

Michael Stuebgen, a conservative member of the German parliament, and his colleagues asked Draghi during his appearance in the Bundestag to explain his policies and answer questions from lawmakers. "It is time for the ECB to change course," Stuebgen said.

Draghi rejected German criticism that sub-zero interest rates were impoverishing savers and straining top lenders, saying its monetary policy was a necessity to get the euro zone back on the path to growth and revive inflation, according to another Reuters article.

The ECB is widely expected to announce an extension of its bond-buying program by the end of the year. The program is due to expire in March. According to Reuters, the ECB could also announce steps to broaden the scope of what it can buy in response to a dwindling pool of available assets as early as next month.

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