Fed's Plans to Phase Out Quantitative Easing | Your Bottom Line
The Federal Reserves’ initiative to end quantitative easing has financial markets nervous about bursting the current stock market bubble, reports NFIB’s chief economist, Bill Dunkelberg, in this episode of Your Bottom Line. Quantitative easing (QE) has been employed by the government in previous periods of economic instability to increase capital. “We cannot avoid rising interest rates and their impact on asset prices,” said Dunkelberg of the impending shift in demand; as soon as the government stops buying bonds, demand for stocks will inevitably fall.
In terms of finding a solution, the horizon is admittedly bleak. Unless policymakers in Washington D.C. are prepared to make changes, there is no mitigating the negative impact. Thus, the future market after QE: wait and see. 2:24
More videos about the economy »