Eurodollar University You Won’t Believe What Europe’s Central Bank Just Did
Nov 3, 2025
Join Steve Van Meter, a macro commentator known for his sharp insights into monetary markets, as he delves deep into Europe's economic landscape. Discover why the ECB's decision to hold rates at 2% could be masking troubling underlying issues. The conversation explores how stagnant GDP affects consumer spending, revealing how companies like Chipotle are feeling the pinch. They also discuss the challenges of rate cuts and their limited impact on low-income households amid broader structural issues in the economy.
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ECB's Pause Masks Growing Weakness
- The ECB held policy at 2% and loudly proclaimed they are done despite weak data.
- Third-quarter GDP across Europe shows continued weakness, implying more rate cuts ahead despite official claims.
Flat GDP Harms Households
- Flat GDP feels positive on paper but hurts households facing falling hours and stagnant incomes.
- Steve Van Meter warns flat growth means fewer jobs and worsening living standards across major economies.
Chipotle And Kraft As Warning Signs
- Jeff cites Chipotle and Kraft Heinz saying customers can't afford price increases.
- He uses those corporate reports as real-world evidence of weak demand and missing income growth.