One day, the Federal Reserve’s long-running stimulus will end. This means that interest rates will start to go up and that the Fed will begin to sell trillions of dollars’ worth of securities it bought during Quantitative Easing, or QE.
The market is afraid that interest rates could go up a lot, or that the Fed will dump the securities quickly, or both. Either scenario could be quite disrupting. Fortunately, those fears are overblown. Read the full report
Written by Raul Elizaldeby