While base rates kept at or close to zero for almost seven years and three massive asset - buying programs by the Fed have undoubtedly helped stabilize the US (and world) economy
during and after the
recession that followed the global financial crisis, the continuation of
expansionary monetary policies is now supporting a growing excess of global liquidity that has been distorting the market signals sent by stock and bond prices and thus contributing to the growing volatility seen in
recent weeks.