Although the Fed recently concluded its quantitative easing (QE), the Bank of Japan has announced an expansion in the pace of its own asset purchases and the ECB is edging closer to full-blown QE. We don't expect these new QE programmes to have much of an effect on the US economy, however, principally because, beyond an initial “signalling” effect, the impact of QE tends to be pretty limited. More generally, the negative impact on the US economy from the dollar's appreciation against the yen and the euro should be mostly offset by the positive impact from slightly stronger economic growth in Japan and the euro-zone. The impact on US Treasury yields and US equities is likely to be negligible.
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