Richard Koo Says Fed QE Withdrawal Is Drug Addict's Nightmare
The quantitative easing game of chicken is at work, as QE withdrawal is back as a concern with stocks approaching all time highs. When should the U.S. Federal Reserve raise interest rates is a question which came first, the chicken or the egg? As the Fed watches the U.S. stock market improve recently, it determines that the environment for rate increases might be upon us. But the reason the stock market has been climbing is due, in part, to a dovish attitude regarding interest rates. When stocks were falling over the past three quarters, it was due in large part to...
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