At this level, virtually everybody in world markets is acquainted with the notion of higher-for-longer rates of interest. Quickly, they’re prone to meet one other idea as necessary for understanding central-bank coverage: less-for-longer quantitative tightening (QT). This phrase describes how the Federal Reserve intends to proceed decreasing its property to undo its big bond purchases throughout the covid-19 pandemic. It hopes {that a} less-for-longer strategy will finally depart it with a smaller balance-sheet than would in any other case be the case.
