End of QE in the United States has implications for real estate
Asia Pacific investors continue to closely follow movements by the US Federal Reserve. The US Federal Open Markets Committee recently announced that it has ended its asset purchasing programme, known as quantitative easing, marking the end of a six-year effort to both prop up and stimulate the economy that has, at least by some measures, been successful in stabilising the US economy. Economic indicators have improved, such as the US unemployment rate dropping below 6 percent for the first time since 2008, and the US commercial real estate industry has staged a recovery.
At the annual meeting in October of the Editorial Advisory Board for The Letter – Asia Pacific (see board list, page 31), a majority of board members said that, of the world’s major central banks, the Fed has best handled economic policy in recent years.
“QE kept the economy, and commercial real estate, floating — deflation would have been a terrib