Fed ‘Backed Into a Corner,’ Low Rates and QE Here To Stay: Belski

Four years and a few trillion dollars later, and the jury is in, so to speak, on the efficacy of what has been called "the greatest experiment" in the history of monetary policy.

Quantitative easing doesn't work.

At least not towards achieving either of the central bank's two core objectives; full employment and price stability. Sure it boosts asset prices, particularly in the stock market, and you bet it helps keep interest rates artificially low, but when it comes to completing that circle, and encouraging companies to hire, it's a hard argument to make.

"Monetary policy, we think, has kind of proven that it does not add jobs," says Brian Belski, chief investment strategist at BMO Capital Markets, in the attached video. "It's really fiscal policy and fundamentals that add jobs," he says, noting that even Ben Bernanke has repeatedly made that clear.  (more)

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