PIMCO's Fels: Doubts Remain That Central Banks Can Continue Propping-up Economies

PIMCO’s global economic adviser, Joachim Fels, published a new blog post to the company's website on Tuesday entitled: Money Glut: More to Come, Still Effective. The following are key takeaways from the post:

• Even if the Fed lifts off zero in December, it will probably be the most dovish rate hike ever. By contrast, the other big players – the ECB, the BOJ and the PBOC – look set to ease policy further.
• Many market participants harbor increasing doubts that monetary policy can still be effective in propping up asset markets and thus economies further. This thesis should be taken seriously, but there are compelling arguments against it. While we may expect less “bang for each buck” than in previous episodes of quantitative easing, the results should still be positive.

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