Fed researchers find effects of QE ‘minimal' without guidance on rates
An ‘economic letter' written by two senior Fed economists and published this week by the San Francisco Fed argues that the effects of quantitative easing on GDP growth are significantly smaller than the effect of temporarily reducing the federal funds rate by 25 basis points. The authors concluded that "communication about when the Fed will begin to raise the federal funds rate from its near-zero level will be more important than signals about the precise timing of the end of QE 3".
The paper: H
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