What the Bank of England’s Emergency Move Means—And Doesn’t—for the Fed

The Bank of England’s emergency move to buy U.K. government bonds begs the question: Is the resumption of quantitative easing in the U.K. idiosyncratic, or does it foreshadow a U.S. Federal Reserve that is close to backing down from its inflation fight?

On Wednesday the BoE said it would purchase the country’s long-dated government bonds “on whatever scale is necessary” to stabilize its bond market after the U.K. government announced large tax cuts last week despite double-digit inflation. Strategists say the central bank’s move implies that at least one large entity, such as a pension fund or a financial institution, was on the verge of failure amid a disorderly Gilt market. What the Bank of England’s Emergency Move Means—And Doesn’t—for the Fed

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