Fed announced recently that, there will be no more QE and there will not be surprises. In one way you may think they are optimistic about future and all QE were effective; however if you closely look economic fundamentals there is not any significant improvement in these factors. That means if Fed stops another QE market is going to fall (market requires to be more productive, not only printing and borrowing) as it happening now – at QE2 expiration. However, is spite of this announcement by the Fed, it can take different form of quantitative easing, one example can be keeping target interest rates at low level. If Fed enhances easing policies in any form it may create danger, and this danger is market instability around the world – one example of this instability is inflation. And what does this inflation (apart from increasing business risk) in some way is that, it keeps negative interest rates for a long time, these low interest rates rips off savers and pension plans. What can be the result? The gap between rich and poor may widen more.
