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by satellite2
1348 days ago
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Capital and liquidity requirements are not decided by central banks generally. In most democracies it's a legislative branch responsibility. They cannot "withdraw" QE. What they have been doing is buying bonds at a higher price than the market thus lowering the interest rates they simple buy them a bit cheaper now. |
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Withdraw QE = either sell bonds or let them mature, reducing the size of the fed balance sheet. Which drains liquidity from the market (new treasury issuances have to be absorbed by the market).