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QE no boost to Stock Price According to McKinsey

According to the consultants at McKinsey, the Fed’s QE program has not driven stock prices higher. The study flies in the face of what many investors currently believe as the main driver behind the rise in stock prices, massive stimulus from the Fed. Quantitative easing according to the authors of the study has only helped the government. For example, governments can borrow at lower levels and increase spending as a result of suppressed interest rates caused by the easing policy. According to the study, “In the United States, the effective rate paid on all outstanding government debt fell from 4.8 percent in 2007 to 2.4 percent in 2012.” The study is pretty interesting; here is the link if you’re interested in learning more: McKinsey Report.