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Fed May Be Stuck with Forever Stimulus as Exit from QE Impeded

  • Investors, governments may balk if central banks pull back
  • Immediate policy focus is on providing more support, not less
Federal Reserve Close To Making Its New Inflation Strategy Official
Photographer: Erin Scott/Bloomberg
Updated on

The Federal Reserve and other central banks will eventually discover that breaking up isn’t easy after partnering with their governments and the financial markets to avert a pandemic-driven depression.

Investors and lawmakers enamored with cheap money may well balk when monetary authorities try to throttle back their quantitative easing and other stimulus measures.