KW: There’s more cheap central bank credit, or what I call “dark money” coming this fall. The only question is how much. Besides the Fed, the European Central Bank (ECB) is set to open the money spigots. Incoming ECB head Christine Lagarde (who previously ran the IMF) made that clear in recent statements.

Lagarde declared that “the ECB has the tools to tackle a downturn and must be ready to use them if needed.” She has also said it is “clear that monetary policy needs to remain highly accommodative for the foreseeable future.”

She furthermore stated that the ECB has room to cut rates further, despite the negative deposit rate of -0.4%. So negative rates aren’t accommodating enough? The ECB’s next policy meeting is Sept. 12. Expect the floodgates to open. Here’s more.

Source: Lagarde Reveals Dovish ECB View in Hint of Post-Draghi Policies