The U.S. Federal Reserve announced in late March that it was racing to rescue the U.S. economy amid COVID-19 pandemic through an unlimited quantitative easing program, taking the Fed's monetary policy tools to the extreme as some observe.

What Does Unlimited QE Mean?

Back to Media Home. April 3, 2020. Central Banks, Politics. Unlimited QE (Quantitative Easing—aka money printing) is now here, which means we are now experiencing the most distorted and dangerous inflection point in the history of our capital markets.

Will unlimited QE cause inflation?

Risks and side-effects. Quantitative easing may cause higher inflation than desired if the amount of easing required is overestimated and too much money is created by the purchase of liquid assets. On the other hand, QE can fail to spur demand if banks remain reluctant to lend money to businesses and households.