3min chapter

Money For the Rest of Us cover image

Will Quantitative Tightening Lead To Even Greater Financial Losses?

Money For the Rest of Us

CHAPTER

Quantitative Tightening - What Happened?

As long as the federal government continues to run a budget deficit, wealth is still increasing across the economy. The amount of cash in liquidity in the economy was less, but the amount of wealth didn't drop. During that two year period of quantitative tightening, the us. Economy grew by three % in t 18, as measured by g d p and it grew by two point two % in 20 19. Stocks returned ten point two% annualized from december 20 fifteenth through september 20 nineteenth. Annealyzed, just because the federal reserve is raising interest rates does not mean acid classes have to sell off. Because they didn't.

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