The Effect of Quantitative Easing

Posted in: Economics, Stock Market, Thought of the Week

Federal Reserve Chairman Bernanke announced recently that the current Quantitative Easing (QE) policy will continue into the first quarter of 2014 at a total expense of $1.14 trillion. Theoretically, QE is expected to lower interest rates and produce economic growth by buying government securities and other securities from the market and infusing financial institutions with capital to promote lending and liquidity.

This week, Global Financial Private Capital’s investment committee examines the central bank’s stimulus policy of Quantitative Easing and its sometimes unintended consequences. Are you holding Treasuries? What about that stock portfolio? Read the Thought of the Week for some interesting insights.

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As an Investment Advisory Representative working in conjunction with Global Financial Private Capital (GFPC) we are provided weekly thoughts on what is happening in the economy and the market.  Written by our investment committee at GFPC we find these thoughts to be informative and interesting.

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