"THE FEDERAL Reserve’s unconventional 'quantitative easing' strategy will not turn into a “QE-ternity” after all. Many a Wall Street wag had suggested that might happen after then-Fed Chairman Ben S. Bernanke announced an indefinite program of $40 billion per month in asset purchases in September 2012.
"But on Wednesday the Fed released minutes of its internal discussions showing that the central bank, under new chair Janet L. Yellen, plans to stop quantitative easing in October.
"The conclusion of the Fed’s bond-buying, which had increased its balance sheet to $4.4 trillion from $900 billion before the financial crisis, is good news in two ways. It is a sign that the Fed believes growth and job creation have finally achieved enough momentum to continue without the stimulus that comes from adding to the Fed’s balance sheet — while the stimulus of near-zero interest rates and the expanded balance sheet remain in place."
What happens now?
The end of quantitative easing is good news - The Washington Post
"But on Wednesday the Fed released minutes of its internal discussions showing that the central bank, under new chair Janet L. Yellen, plans to stop quantitative easing in October.
"The conclusion of the Fed’s bond-buying, which had increased its balance sheet to $4.4 trillion from $900 billion before the financial crisis, is good news in two ways. It is a sign that the Fed believes growth and job creation have finally achieved enough momentum to continue without the stimulus that comes from adding to the Fed’s balance sheet — while the stimulus of near-zero interest rates and the expanded balance sheet remain in place."
What happens now?
The end of quantitative easing is good news - The Washington Post