A constant for investors over the last five years has been very easy global monetary conditions, with near zero interest rates and quantitative easing programs in the US, Europe and Japan. This has helped the global economic and share market recoveries since the GFC. But with the US economy on the mend the time will come when it will be appropriate to start unwinding the monetary stimulus. Already the Fed has been winding down its quantitative easing program. And with it likely to end later this year and the US economy picking up from a winter slumber, the next big issue for investors may well be when the Fed will start to raise interest rates.
This note looks at the key issues, taking a Q&A approach.