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Aug 18, 2020

Fed’s QE Infinity Suppresses Rates Volatility, But May Not Revitalise The Economy And Inflation

Peter Cecchini

By Peter Cecchini

18 August 2020

In this paper we discuss:

How the Fed’s QE infinity is suppressing interest rates volatility;
Why there is little appetite for negative policy rates in the US;
Why the current low-vol environment is not goldilocks, quite the opposite;
How the risk of higher yields is wildly underappreciated; and
Why unlimited ammunition for central banks might not be enough to revitalise the economy and inflation.