The Fed in a Box Part 2: They Cannot End Quantitative Easing

  1. If the Fed tapers QE, it may reveal waning appetite for long-term treasuries
  2. The Treasury may have used its cash balance reserve to anchor inflation expectations
  3. If inflation persists, the Fed may have to increase rather than decrease QE

The Fed In A Box Part 2: They Cannot End Quantitative Easing | ZeroHedge

Published by markskidmore

Mark Skidmore is Professor of Economics at Michigan State University where he holds the Morris Chair in State and Local Government Finance and Policy. His research focuses on topics in public finance, regional economics, and the economics of natural disasters. Mark created the Lighthouse Economics website and blog to share economic research and information relevant for navigating tumultuous times.

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