The impact of ‘quantitative tightening’ explained in 60 seconds City Talk Janet Yellen, chair of the Federal Reserve (Fed), has announced the Fed is going to introduce a new policy called quantitative tightening (QT). This is very different from quantitative easing (QE). QE was when the Fed created brand new money (around $3.5 trillion) to go and buy financial assets, principally government bonds, to suppress interest [...]
Marcus Brookes: How we’ve prepared for the return of inflation City Talk Inflation was already on the rise. Now I expect the policies likely to follow in Donald Trump’s presidency will pile on further price pressure. The deflating effect of QE We have been changing our portfolios over the last year to reflect our view that inflation may be returning to the financial system. Yes, quantitative [...]
Marcus Brookes: How we’ve prepared for the return of inflation City Talk Inflation was already on the rise. Now I expect the policies likely to follow in Donald Trump’s presidency will pile on further price pressure. The deflating effect of QE We have been changing our portfolios over the last year to reflect our view that inflation may be returning to the financial system. Yes, quantitative easing, [...]