• 657 days Will The ECB Continue To Hike Rates?
  • 657 days Forbes: Aramco Remains Largest Company In The Middle East
  • 659 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 1,059 days Could Crypto Overtake Traditional Investment?
  • 1,063 days Americans Still Quitting Jobs At Record Pace
  • 1,065 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 1,068 days Is The Dollar Too Strong?
  • 1,069 days Big Tech Disappoints Investors on Earnings Calls
  • 1,070 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 1,071 days China Is Quietly Trying To Distance Itself From Russia
  • 1,072 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 1,075 days Crypto Investors Won Big In 2021
  • 1,076 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 1,077 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 1,079 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 1,079 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 1,082 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 1,083 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 1,083 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 1,085 days Are NFTs About To Take Over Gaming?
Michael Pollaro

Michael Pollaro

Michael Pollaro is a retired Investment Banking professional, most recently Chief Operating Officer for the Bank's Cash Equity Trading Division. He is a passionate free…

Contact Author

  1. Home
  2. Markets
  3. Other

Don't Fear the End of QE, says BofA Merrill Lynch

Don't fear the end of QE says economist Ethan Harris in a November 7th BofA Merrill Lynch Global Research note. Quoting Mr. Harris...

One of the striking things in the last five years is the wildly conflicting claims about the impact of QE on the economy and markets... investors should neither fear nor celebrate the end of QE3 asset buying. It never posed a serious inflation or bubble risk. It has been a small stimulus to the markets and the economy and, hence, its withdrawal is a small de-stimulus. Since its end was well advertised... it is already largely priced into the markets. The Fed can always bring it back. And other central banks are more than replacing the end of Fed buying.

We could not disagree more with Mr. Harris. True, the Federal Reserve's (Fed) asset purchase program (QE) has not had much of an impact on the real economy but it has had a huge impact on the markets.

Continuereading the rest of the article here.

 

Back to homepage

Leave a comment

Leave a comment