Quantitative easing as we know it is coming to an end. By the time
you read this, it most likely will be over. In itself this is an end of
an era. Interest rates will rise unless a new form of interest rate
suppression is introduced, which in itself would be another kind of QE.
The dollar is going to rise as interest rates rise.
It is all well and good for the Fed to say interest rates will stay low for a long time but without QE that cannot be guaranteed. The only way to ensure low interest rates is for the Fed to buy securities–mainly bonds–and force their price up in what amounts to a market corner.
Once the Fed stops the processes of making a market corner then interest rates will revert to their true market levels, which, unless the world has changed forever, are significantly higher than today’s rates.
http://www.forbes.com/sites/investor/2014/09/23/the-end-of-the-qe-era-is-upon-us-whats-next/
The dollar is going to rise as interest rates rise.
It is all well and good for the Fed to say interest rates will stay low for a long time but without QE that cannot be guaranteed. The only way to ensure low interest rates is for the Fed to buy securities–mainly bonds–and force their price up in what amounts to a market corner.
Once the Fed stops the processes of making a market corner then interest rates will revert to their true market levels, which, unless the world has changed forever, are significantly higher than today’s rates.
http://www.forbes.com/sites/investor/2014/09/23/the-end-of-the-qe-era-is-upon-us-whats-next/
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