News about quantitative easing, including commentary and archival articles published in The New York Times.

Chronology of Coverage

Feb. 26, 2015

German Finance Agency sells 3.28 billion euros, or around $3.72 billion, in five-year notes with average yield of negative 0.08 percent, first time in its history, which signals that investors are prepared to pay Germany for right to hold its debt; milestone comes as European Central Bank is set to begin quantitative easing to stimulate growth in European economies. MORE

Jan. 23, 2015

The Upshot; experts warn European Central Bank’s decision to initiate aggressive bond-buying program in eurozone may not provide enough economic stimulus to deliver growth breakthrough and may create unpredicted global ripple effects; greatest uncertainty for Europe is whether the decision to initiate quantitative easing will be enough to arrest slide toward deflation. MORE

European Central Bank faces challenge of how to conduct stimulus in form of quantitative easing after court opinion issued in lawsuit filed by German citizens seeking to block previous bond-buying program paves way for such action; analysts say Mario Draghi, bank’s president, must show bank is dedicated to providing stimulus while avoiding political issues like Germany’s opposition to any such program. MORE

European Central Bank chief Mario Draghi faces quandary as he decides whether to deploy quantitative easing to combat euro zone’s long-languishing economy; measure that might save region also threatens to divide it, amid strong opposition from wealthier nations like Germany. MORE

Japan’s unexpected recession worries other troubled economies, notably Europe, which faces decision on whether to follow Japan’s lead by injecting more money into economy; European Central Bank ponders aggressive bond-buying campaign known as quantitative easing. MORE

European Central Bank chief Mario Draghi sends strong message that organization is preparing aggressive stimulus measures, raising possibility of large-scale bond purchases; statement seems to soothe markets, but questions remain about how long Draghi can appease investors merely through promises, and whether tactic will be able to reverse worrisome deflationary trend; many economists and policy makers remain frustrated by the ECB’s reluctance to truly adopt quantitative easing that has had strong effect in England, Japan and the United States. MORE

Federal Reserve will end quantitative easing program that has seen it spend billions on bonds over past six years; will continue to hold short-term interest rates near zero, and will replace maturing bonds to keep holdings at about $4.5 trillion; milestone represents end of program that is widely viewed as successful, having fueled one of the longest bull markets in American history and buoying economy at a time of global stagnation. MORE

Charles Plosser, president of Federal Reserve Bank of Philadelphia, says he will retire in March 2015; Richard Fisher, president of Federal Reserve of Dallas, is required to step down in April; two have warned loudly and persistently that Federal Reserve is overreaching in its economic stimulus campaign. MORE

Analysts say first phase of Federal Reserve’s retreat from its economic stimulus campaign is nearly complete, and now it is chairwoman Janet L Yellen’s turn to chart the way forward; Fed will next need to focus on bank’s power to set interest rates, but economic and strategic questions will shape their decisions. MORE

Federal Reserve says that it plans to stop adding to its bond holdings in October, sign of its confidence that the economy is gaining strength even as it gradually withdraws its support; decision signals end of one of central bank’s most aggressive efforts to stimulate the economy. MORE

International Monetary Fund suggests that if inflation in euro zone continues to drag, European Central Bank should invigorate economy by buying government bonds and other financial assets; strategy would amount to emulation of Federal Reserve’s quantitative-easing program, strategy many economists have been urging. MORE

Jeff Somer Strategies column holds that Federal Reserve faces tricky path in attempting to dial back monetary policy without causing serious problems for financial markets, especially in terms of stock prices that have soared over past five years. MORE

Narayana R Kocherlakota, president of the Federal Reserve Bank of Minneapolis, has emerged as the bank’s only senior official publicly arguing that it should increase efforts to stimulate the economy; Kocherlakota does not oppose bank’s plan to reduce bond purchases, but he advocates further suppression of short-term interest rates to combat persistent unemployment. MORE

Jeff Sommer Strategies column contends that the long American stock market rally fueled by the Federal Reserve’s bond-buying program has been memorable and remarkable, but cautions that stormier times with much more risk are coming, probably fairly soon; points out what investors have been experiencing is outside typical range of market behavior over last 100 years. MORE

Federal Reserve says it will gradually end its bond-buying program during 2014 in modest first step toward unwinding broader stimulus campaign as officials gain confidence in economy’s growth; seeks to offset concerns of pulling back too soon by strengthening plans to hold short-term interest rates near zero. MORE

Federal Reserve has made it clear that its bond-buying campaign will not continue at present pace for much longer; even officials who support the stimulus agree that the Fed should taper off and focus on stimulating the economy by other means; say it is just a matter of timing. MORE

Anna Bernasek Data Points column notes that Federal Reserve has spent $800 billion buying bonds since Sept 2012 to reduce long-term rates, but rates are actually higher than when it started; points out that for that money Fed could have given every homeowner in nation $10,000 loan at near-zero rate of interest, with greater economic benefit. MORE

Floyd Norris High & Low Finance column cites potential economic repercussions as Federal Reserve unwinds its program of quantitative easing, noting that move could choke off housing recovery, cause sell-off in stocks and undermine consumer confidence; argues that such concerns, prompted by surprisingly strong economy, are welcome ones indeed. MORE

Federal Reserve faces the possibility of large losses as it plans to sell some of its vast holdings of Treasury and mortgage-backed securities and limit the pace of new lending; losses could force the Fed to suspend annual payments to the Treasury Department for the first time since the 1930s. MORE

Bank of Japan announces what it calls groundbreaking effort to reinvigorate country’s long-suffering economy, setting ambitious 2 percent inflation target and pledging to ease monetary policy; there are doubts, however, about just how much effect moves will have. MORE

Jan. 20, 2013

Christina D Romer Economic View column holds that Federal Reserve’s more aggressive monetary policy could be very helpful to recovering economy, but notes that internal debate at central bank may weaken program before it gets off ground; points out policy’s opponents do not have history on their side. MORE

Federal Reserve officials are debating how soon to stop campaign to reduce unemployment, only months after announcing effort; support for early end date reflects uneasiness among Fed officials about effectiveness of asset purchases in stimulating the economy. MORE

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