Home Tags QE
The stock market's record-setting rally has been driven by unprecedented monetary stimulus. Now we enter a crucial period to see how it will fare without it.
The central bank is widely expected to announce the start of a reduction in its $4.4 trillion balance sheet at the conclusion of its meeting on Wednesday.
Nicholas Macpherson, who was permanent secretary to the Treasury from 2005 to 2016, said there are "negative side-effects" from central banks' QE programs.
Uncertainty around the timing and pace of the winding down could hurt credit markets.
The Bank of England should think about following the Fed and ending QE early, senior rate-setter says
Bank of England Monetary Policy Committee member Ian McCafferty said in an interview that the central bank should start unwinding QE ahead of schedule.
There's nothing like a really good chart to put numbers so large they seem unfathomable into more tenable perspective.
"I think it is inevitable that we’re going to be talking about the balance sheet expanding during recessions," said Eric Rosegren, president of the Boston Fed.
At $4.5 trillion, the Fed's balance sheet is some five times larger than its pre-crisis total.
Only one thing that can jumpstart the global economy right now — but no government is willing to do it
However, there is only one thing that could truly kickstart the global economy: fiscal stimulus. The issue is, no country wants to do it.
A big change for the ECB could be coming.