The wild card that could sink stocks: What investors need to know as the Fed unwinds liquidity that helped fuel market gains

The wild card that could sink stocks: What investors need to know as the Fed unwinds liquidity that helped fuel market gains

Quantitative monetary easing is credited with boosting stock returns and boosting other speculative asset values ​​by flooding markets with liquidity as the Federal Reserve clawed back billions of dollars worth of bonds during the crisis financial crisis of 2008 and the coronavirus pandemic of 2020 in particular. Investors and policymakers may be underestimating what happens …

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