• Mon
  • Sep 15, 2014
  • Updated: 1:53pm

Quantitative Easing

Quantitative easing (QE) refers to large-scale asset purchases by the US Federal Reserve to inject liquidity in the world’s biggest economy after the onset of the global financial crisis in late 2008. In September 2012, stubbornly high US unemployment and faltering economic growth prompted it to launch QE3, under which it planned to buy US$40 billion worth of bonds per month, with no set end date. As of late 2012, it had bought some US$2.3 trillion in long-term securities. In December 2012 it announced it was increasing its purchases to US$85 billion a month.

Perceived shift in US Fed's monetary policy causes uncertainty

As the dust begins to settle around the latest perceived shift in policy on the part of the United States Federal Reserve, uncomfortable questions are being asked about the credibility of US monetary policy and the communication skills of the world's most closely watched central bankers.

Tuesday, 1 April, 2014, 7:07pm

Emerging economies should not fear Fed tapering

The US Federal Reserve's gradual exit from so-called quantitative easing - open-ended purchases of long-term assets - has financial markets and policymakers worried, with warnings of capital flight from developing economies and collapsing asset prices dominating policy discussions worldwide.

5 Mar 2014 - 1:51am

Easy come, easy go as emerging markets discover with US Fed tapering

During the financial crisis, the major emerging markets escaped the damage from the United States and European Union relatively unscathed. Not any more. The rout in the capital markets of the emerging economies in the past week is a reminder that many of them face serious problems from heavy government debt to large current account deficits. In a sense, it was a continuation of the mayhem they experienced during last summer, when talks about tapering by the US Federal Reserve were first raised.

29 Jan 2014 - 4:09am

'Meaningful' job gains led Fed to trim bond purchases, minutes show

The United States Federal Reserve agreed last month to modestly reduce its bond purchases because of improvements in the job market that many Fed members felt would be sustained.

9 Jan 2014 - 11:47pm

Time to taper? Not if you look at bank loans

The US Federal Reserve decided to hold off on scaling back its bond-buying program on Wednesday, and at least one reason for its choice may have been a stubbornly weak economic indicator: bank lending.

19 Sep 2013 - 10:51am

Bernanke: Fed will not raise rates in forseeable future

Federal Reserve Chairman Ben Bernanke reiterated Wednesday that the Fed is nowhere close to raising interest rates, assuring markets that the US easy money tap would not soon dry up.

18 Jul 2013 - 8:37am

Fed split in June on QE timing; Bernanke sees easy policy for now

About half of the Federal Reserve’s policymakers felt the US central bank’s bond-buying stimulus should be brought to a halt by year end when they met in June, but many wanted reassurance the US jobs recovery was on solid ground before any policy retreat.

11 Jul 2013 - 10:38am

Bernanke's shock announcement signals new economic sobriety

The power of words! With his brief statement that it would be "appropriate to moderate the monthly pace of purchases later this year", US Federal Reserve chairman Ben Bernanke sent global financial markets - for equities, commodities, bonds and foreign exchange - into a tailspin.

23 Jun 2013 - 4:18am

Blurry view on Fed policy

Federal Reserve chairman Ben Bernanke seemed a little nervous at his news conference on Wednesday. His recent comments about the future course of monetary policy had rattled investors and driven bond yields up, tightening financial conditions in a way the Fed did not want.

21 Jun 2013 - 4:18am

World Bank watching US Fed, ready to respond

The World Bank is concerned about the spillover effects on developing countries of a slowing of US money creation and will move to provide affordable capital when borrowing costs rise, its president said on Wednesday.

20 Jun 2013 - 12:55pm