Market history · Central banks ·
Central banks begin to unwind QE
On 20 September 2017 the Federal Reserve announced it would start reducing its balance sheet in October, the first serious attempt to unwind post-crisis quantitative easing. The ECB followed in October by saying it would halve its net monthly purchases to €30 billion from January 2018.
Bond yields drifted higher but stayed contained, helped by a synchronised global upswing, though the process would prove much less smooth in 2018 and 2019.
The takeaway
The exit from an unusual policy is harder to model than the entry.
Sources
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