The Economic Times News

Federal Reserve restarts quantitative easing with $40 billion Treasury purchases amid inflation will stock markets feel the heat?

Federal Reserve is restarting quantitative easing after massive balance-sheet reductions since 2022. Inflation remains near 3 percent, above the Feds 2 percent target. Federal borrowing costs are rising over $1 trillion annually. The Fed plans $40 billion in Treasury purchases to ease rates and maintain ample reserves. Markets and policymakers watch closely as QE returns, signaling a major shift.