QE Backfires as Dividend Quest Usurps Growth: Cutting Research

Worldwide quantitative easing may be making investors richer rather than encouraging business investment, according to Citigroup Inc.

Fulfilling the goals of central bankers such as Federal Reserve Chairman Ben S. Bernanke, ultra-low interest rates and bond purchases are encouraging investors to buy stocks. Policy makers’ intent was that asset prices and wealth would rise, encouraging consumers and businesses to spend more.