Deutsche Bank: If the Fed Kneecaps U.S. Credit Growth, Get Ready for Twist 2.0
A different kind of unconventional stimulus may be in the cards.
Let's Twist again, like we did the last time the U.S. economy needed stimulus.
Photographer: Andrew Harrer/BloombergThis article is for subscribers only.
The chorus of voices wondering about a return to unconventional monetary policy in the U.S. is growing louder.
Bridgewater's Ray Dalio suggested that there would be a big easing — in which the central bank's bond-buying program known as quantitative easing was deployed once again — before a large tightening from the Fed. Meanwhile, outgoing Minneapolis Fed President Narayana Kocherlakota indicated that he thought monetary policymakers should be considering negative interest rates to help bring the economy back to full employment.