Only in the unlikely event of a Eurozone breakup will Europe's current troubles infect the U.S. economy, said Joseph Davis, Global Chief Economist at Vanguard. Davis said the ECB's interest rate cuts and quantitative easing program announced today are a welcome sign because they acknowledge the threat of deflation. However, he added that ECB President Mario Draghi should have been following the Federal Reserve's footsteps long ago and is now struggling to catch up. Finally, Davis said Draghi has more ammunition than what is potentially feared because he can still purchase sovereign debt next year and that’s "a big weapon".

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