The Financial Times (FT) quotes the projections by the Credit Suisse analyst, Zoltan Pozsar, noting that the surge in overnight borrowing costs that occurred in the US financial system in September will return at the end of the year.
And therefore, it will see the Fed return to full blown QE, Pozsar added.
He said that Fed “tapered the balance sheet too much, too fast. The Fed needs to undo that.”
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