European Central Bank

Central banks lose bond-market credibility as woes mount

More and more, bond traders are drawing the same conclusion: Central bankers globally are coming up short in their attempts to combat the world's economic woes. Even after hundreds of interest-rate cuts and trillions of dollars in quantitative easing, the bond market's outlook for inflation worldwide is approaching lows last seen during the financial crisis. In the U.S., Europe, U.K., and Japan, those expectations are now weaker than they were before their respective central banks began their last rounds of bond buying. That's leading investors to write off the Federal Reserve's chances of raising interest rates this year and increase their bets that it will tighten...