“In fact, there’s a big difference between the three scenarios before the Fed. One option would be to keep QE2 going after June, continuing to grow the Fed’s balance sheet. The second option would be to kill QE2, but keep QE1.5 intact, leaving the size of the Fed’s balance sheet unchanged. The third option would be to kill QE1.5 as well, which would mark the beginning of the Fed’s exit from monetary stimulus, as it would allow the central bank’s balance sheet to begin to decline in size.” Read more.
“Fed’s Monetary Stimulus Won’t Completely End in June”
The Atlantic, April 20, 2011.
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