Federal Reserve‘s “endless QE” cheers markets

America's Federal Reserve has slashed interest rates and launched unprecedented bond-buying programmes that stretched its mandate to its limits. More could be in store next year.

Federal Reserve Board Chairman Jerome Powell
Keep an eye on Jerome Powell next year, not Joe Biden
(Image credit: © Samuel Corum/Getty Images)

The post-election stockmarket is a “Labrador”, writes Ben Wright in The Daily Telegraph. Like the dog breed, it is proving “monomaniacally cheerful irrespective of circumstances”. Global markets had perked up in the days before the US election; polls suggested a Democratic blue wave would open the way for a $2.2trn stimulus package.

Yet when it became clear that Florida and Texas would not be painted blue, markets didn’t retreat. Instead, they decided that a Biden White House combined with a Republican Senate was what they had wanted all along. As the world waited for a final election call, the S&P 500 gained 7.3%, its best weekly performance since April.

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Markets editor

Alex is an investment writer who has been contributing to MoneyWeek since 2015. He has been the magazine’s markets editor since 2019. 

Alex has a passion for demystifying the often arcane world of finance for a general readership. While financial media tends to focus compulsively on the latest trend, the best opportunities can lie forgotten elsewhere. 

He is especially interested in European equities – where his fluent French helps him to cover the continent’s largest bourse – and emerging markets, where his experience living in Beijing, and conversational Chinese, prove useful. 

Hailing from Leeds, he studied Philosophy, Politics and Economics at the University of Oxford. He also holds a Master of Public Health from the University of Manchester.