Comments by top Federal Reserve officials support the idea that the Fed is going to move away from quantitative easing as a policy tool and lean more heavily on forward guidance. There are a number of reasons for this, not the least of which is political. Comments by Atlanta Fed President Dennis Lockhart in particular suggest that the move away from QE has already been decided. Below are some thoughts on the why, when and how and what this will mean for markets.
It becomes a bit dull to have to write about the Federal Reserve and quantitative easing so much. But the reality of today’s economy, not just in the US but globally, is that the policy moves of the top central banks have taken on critical importance both for markets and the real economy. I have argued that the i...
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Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.