Can the Fed Ever Remove Stimulus?

February 22, 2013 11:37 by Clayton Reeves in Economy, Financing  //  Tags:   //   Comments (0)

An important topic for bankers, investors and citizens alike is the future active role of the Fed in the market place.  The actions of Bernanke & Co. have a material impact on what sort of lending and borrowing environment we operate within.  We've gone through several speeches and stages of quantitative easing (QE).  At first the question was, "When will QE stop?"  Then, it transitioned to, "Will QE ever stop?"  Finally, we are at the crossroads of "Can QE ever stop?"

There is more to it than just hitting an on/off switch; the balance sheet of the Fed is now an albatross of securities that if sold could wreak havoc on other yield products.  AMG has done a great job of summarizing and discussing these issues.  

Read more here.

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