US President Barack Obama reportedly promised delegates at the G20 Summit in St. Petersburg Thursday that quantitative easing in the United States would be wound down gradually, in an apparent attempt to allay emerging markets fears about any sudden shifts in US monetary policy
The United States’ latest round of quantitative easing (QE3), designed to boost the US economy, was launched last year and the Federal Reserve is widely expected to begin winding down the $85 billion monthly bond buying program at its upcoming meeting later in September
The United States’ latest round of quantitative easing (QE3), designed to boost the US economy, was launched last year and the Federal Reserve is widely expected to begin winding down the $85 billion monthly bond buying program at its upcoming meeting later in September
Emerging markets, including Russia, are wary that adjustments to QE3 could have serious consequences for their economies, causing significant outflows of investment and depreciating their currencies
The Indian rupee, the Brazilian real and, to a lesser extent, the Russian ruble, have all fallen against the dollar this year as expectations about an end to QE3 have grown
“The majority of countries with developing economies take the position that it is essential to take careful action when winding down this policy”
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