Posts
|
| Markets will learn to welcome QE3 |
|
The expansion of the Federal Reserve’s quantitative easing programme
has raised a number of fundamental questions, namely: Will QE work in
boosting the economy? Will it lead to an upturn in inflation? And what
will the impact be on asset prices, notably global equity, bond and
commodities markets? Although the Fed has expanded its balance sheet from $800bn in September 2008 to close to $3tn, signalled the Fed Funds rate will stay historically low for an extended period and extended the duration of its US Treasury holdings, the impact of these moves so far has been muted. But, argues Robert Parker, we may be at a turning point in the effectiveness of monetary policy and QE may likewise finally have a significant impact on investor behaviour. http://link.ft.com/r/0QSDPP/ |
No comments:
Post a Comment