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There is nothing in the report to deter the Federal Reserve from continuing to buy bonds with newly created money (quantitative easing).
Sterling had been jolted earlier in the week when it emerged that Bank of England governor Sir Mervyn King had wanted to print more electronic money – quantitative easing – in an effort to bolster growth.
In 2013 the Bank of Japan began buying bonds with newly created money (quantitative easing), as part of a plan by Shinzo Abe, the prime minister, to banish deflation and boost growth.
Previous initiatives have included purchasing bonds with newly created money ("quantitative easing", or QE), reinvesting the proceeds of maturing bonds, and verbally committing to keeping rates near zero for ever longer periods.
After lowering short-term interest rates to zero in late 2008, the Fed then bought $1.7 trillion-worth of Treasury and mortgage bonds with newly created money ("quantitative easing," or QE), to bring down long-term rates and release liquidity.
It slashed the federal-funds rate to zero in 2008 and then bought trillions of dollars of government bonds with newly created money ("quantitative easing") to pull down bond yields.Powerful headwinds still kept the recovery anaemic.
Similar(51)
In the United States, by contrast, the global demand for Treasury bills, and the benefits of the Federal Reserve Board's easy-money "quantitative easing" policy, have kept 10-year bond yields well below those of Britain.
Darling continued to claim that his printing of new money through quantitative easing was aiding business.
The euro has risen even as the ECB has been printing money through quantitative easing.
Printing money — or quantitative easing — has always been seen as the last resort.
In a Reuters interview at Davos he said we were approaching the point where the damage from central banks printing money – aka quantitative easing – could outweigh the benefits.
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