It is credited with preventing the worst global recession since at least the second world war from turning into something far worse. But after the injection of trillions of dollars into financial markets to cushion the blow from Covid-19, the era of quantitative easing could be coming to an end.
This week, attention will turn to the gathering of central bank chiefs in Jackson Hole for clues about how the US Federal Reserve plans to bring its vast QE bond-buying programme to an eventual halt after more than a year of emergency stimulus.
Regarded as “Davos for central bankers” since its inception in the 1970s, the annual meeting in the remote Wyoming resort will have a different flavour this year as the pandemic holds back a return to normal.
The Bank of England governor, Andrew Bailey, will not attend, as would be usual, and there will be no Christine Lagarde, the president of the European Central Bank. Due to Covid disruption, the Federal Reserve…