An almost impossible balancing act

Christian Hawkesby  | Harbour Asset Management | 06 June 2013

Executive summary

• Both global and New Zealand long-term global bond yields rose sharply in May, driven by fears that the US Federal Reserve may begin to taper Quantitative Easing (QE) sooner than expected.

• As the US economy continues to recover from the GFC, the US Fed faces the almost impossible balancing act of drawing back the extreme level of policy stimulus without sending the economy back int...