The debate around whether or not this policy is a form of quantitative easing misses the point: Liquidity is the name of the game for global financial markets.
The Big Flip thesis has been gaining traction in the financial world and describes the market’s misplaced belief in the path of inflation and policy rates.
The market is nearly unanimous in expecting a 0.25% rate hike during February's FOMC meeting, yet many expect a “pause” shortly thereafter. We beg to differ.