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US Fed sowed the seeds of the next crash with QE

As the Fed prepares to exit quantitative easing, debate rages over whether it has just delayed a bigger crisis.


The US Federal Reserve's Open Market Committee meets again this week, and is widely expected to announce the end of its third round of money printing, dubbed "QE3".


Over nearly six years, the Fed has injected $3.6 trillion into the US economy through so-called quantitative easing, buying government bonds and other securities from American banks.


While unemployment has fallen back below 6 per cent and the economy is growing, many analysts warn cheap money has inflated asset prices, laying the seeds for the next bust.






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