Fed QE was $4trn over six years, BOJ and ECB spending a combined $1.5trn year.

INVESTMENT WATCH BLOG ^

[alexmark1917]

Fed’s $4 Trillion Holdings to Boost Growth Beyond End of QE

Quantitative easing may turn out to be a gift that keeps on giving for the U.S. economy.

As the Federal Reserve prepares to end its third round of bond buying next week, the central bank plans to hang on to the record$4.48 trillion balance sheet it has accumulated since announcing the first round of purchases in November 2008.

That will continue to keep a lid on borrowing costs, helping the Fed lift inflation closer to its target and providing support to a five-year expansion facing headwinds abroad, from war in the Mideast to slowing growth inEurope and China.

http://www.bloomberg.com/news/2014-10-24/fed-s-4-trillion-holdings-keep-boosting-growth-beyond-end-of-qe.html

Fed passes QE baton to the #ECB, in one chart: pic.twitter.com/cru4MVclfq

— Pedro da Costa (@pdacosta) January 22, 2015

 The European Central Bank has expanded its asset purchase programme to €60bn a month – here is what strategists and other experts made of the move

The European Central Bank has finally pushed the button on quantitative easing, saying it will pump €1.1tn – €60bn a month – into financial markets until September 2016, to revive the ailing eurozone economy.

Here is what economists, strategists and other experts made of the move. Views range widely – ABN Amro economist Nick Kounis says “ECB delivers bazooka” while Marc Ostwald, strategist at ADM Investor Services International, talks of a “messy compromise”.

http://www.theguardian.com/business/2015/jan/22/what-the-experts-say-about-the-eus-latest-round-of-quantitative-easing

BOJ keeps QE intact in wake of shocking GDP

The Bank of Japan (BOJ) on Wednesday kept its massive stimulus program intact, in the wake of data that showed the economy in recession and ahead of snap elections expected in December.

The move was widely expected after the central bank surprised markets last month by expanding its quantitative easing program, swelling Japan's monetary base by around 80 trillion yen ($682 billion) each year, up from 60-70 trillion yen currently.

"Japan's economy continues to recover moderately as a trend, although some weaknesses remain mainly in output," the BOJ said in a statement after its policy meeting. It revised up its view on exports to say they were "flat," compared with last month's assessment that they were weakening.

http://www.cnbc.com/id/102183423

Fed QE was $4trn over six years. BOJ and ECB spending a combined $1.5trn a year. So forget the taper - the emerging markets party goes on? — Peter Thal Larsen (@peter_tl) January 23, 2015

Recall from Citi: It Costs Central Banks $200 Billion In Money Printing Per Quarter To Avoid A Market Crash

For over a year now, central banks have quietly being reducing their support. As Figure 7 shows, much of this is down to the Fed, but the contraction in the ECB’s balance sheet has also been significant. Seen from this perspective, a negative reaction in markets was long overdue: very roughly, the charts suggest that zero stimulus would be consistent with 50bp widening in investment grade, or a little over a ten percent quarterly drop in equities. Put differently, it takes around $200bn per quarter just to keep markets from selling off.

http://www.zerohedge.com/news/2014-10-21/magic-number-revealed-it-costs-central-banks-200-billion-quarter-avoid-market-crash

[Diana in Wisconsin]