Former director suggests Fed QE could boost gold prices
A former investment director has warned that the Federal Reserve might resort to quantitative easing if risk assets collapse, potentially driving up gold prices. This comes amid ongoing discussions in financial markets about economic stability.
In a recent commentary, a former investment director highlighted potential Federal Reserve actions in response to market turbulence. The director suggested that if risk assets, which include equities and cryptocurrencies, experience a significant collapse, the Fed could implement quantitative easing (QE) to stabilize the economy.
Quantitative easing involves the central bank purchasing securities to inject liquidity into the financial system. According to the director, such measures would likely lead to rising gold prices, as investors turn to the metal as a safe-haven asset during uncertainty.
This perspective aligns with broader market concerns about inflation, interest rates, and global economic risks. Gold has historically performed well in low-interest-rate environments created by QE policies. However, the director's comments do not specify a timeline or exact conditions for such a collapse, leaving the prediction speculative.
The Economic Times reported these insights in its cryptocurrency live updates, noting the interplay between traditional assets like gold and volatile markets including crypto. No further details on the director's identity or affiliation were provided in the source.