The Business Times
business-time-50
THE BOTTOM LINE
·
SUBSCRIBERS

The Fed’s quantitative easing programme has cost too much

The total bill could exceed US$500 billion. A proper evaluation should make the next one less expensive

google-preferred-sourceAdd BT as a preferred source
    • If the US Federal Reserve had begun to tighten monetary policy sooner, the peak in short-term rates would likely have been considerably lower, resulting in fewer losses.
    • If the US Federal Reserve had begun to tighten monetary policy sooner, the peak in short-term rates would likely have been considerably lower, resulting in fewer losses. PHOTO: REUTERS

    Bill Dudley

    Published Tue, Apr 30, 2024 · 05:45 PM

    AMERICA’S experiment with quantitative easing – and the ensuing quantitative tightening – is almost over.

    This week, the US Federal Reserve will likely announce plans to slow the shrinkage of its balance sheet. This foreshadows the end of a long period in which it sought to stimulate the economy by holding large quantities of Treasury and mortgage securities, and later had to shrink its balance sheet.

    So did it work? Yes, but at excessive cost.

    The Bottom LineUS Federal ReserveQuantitative easing

    TRENDING NOW

    Zhang Yiming’s net worth climbs to US$92.8 billion, cementing his position as China’s richest person, according to the Bloomberg Billionaires Index.

    TikTok billionaire overtakes Mukesh Ambani as Asia’s second-richest person

    Vietnam is set to be upgraded to secondary emerging market status later this year, which could pull billions of dollars into its stock market.

    Who would buy Vietnam’s state-owned stakes – when Hanoi is ready to sell?

    KSL's Khoo Lee Feng says it is "not so much what you study, but how you learn".

    Johor property old hand KSL readies family handover amid market boom

    Gojek founder Nadiem Makarim and his wife Franka Makarim at his plea hearing in Central Jakarta District Court on Jun 2.

    Gojek founder Nadiem pleads not guilty, says ‘the world felt like it was ending’ when in prison

    Latest T-bills Treasury Bills Results & Interest NewsLatest SSB Singapore Savings Bonds NewsLatest COE Certificate of Entitlement News
    Latest Johor-Singapore SEZ NewsLatest BTO Build To Order & Sales of Balance NewsLatest STI Straits Times Index NewsLatest SGX Dividends, Share Price NewsLatest Bonds Market NewsLatest Singapore Stocks To Buy NewsLatest Singapore Economy News
    View More