The world's central bankers, led by the US Federal Reserve, are starting to see sense. Quantitative easing – that ugly expression for creating more money and pumping it into the economy – is to be replaced by quantitative tightening. Instead of putting more money in, the Fed will start sucking it back out. Shrinking the balance sheet is another way of saying that the Fed will start QT. But this won't be like the 1970s with double-digit interest rates because as yet inflation has not been allowed to become embedded in the economy.

Source: Daily Mail April 10, 2022 04:09 UTC