Renewed QE?

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QE Is Coming Back

 

Despite the latest fears over stubborn US inflation, we argue that US QT (quantitative tightening) policies are effectively dead. This is for both financial stability and, longer-term, fiscal sustainability reasons. Therefore, even though US policy interest rates may be forced to stay higher for longer, Global Liquidity conditions should improve from 2023 onwards. QE will become a ‘permanent’ market feature, together with its many distortions.

 

 

 

 

See our latest published research, Global View: QE Is Coming Back – February 2023

 

 

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