What is Quantitative Easing (QE)
Quantitative Easing (QE) is a monetary policy tool used by central banks to stimulate the economy by purchasing government securities or other financial assets. This process increases the money supply, aiming to lower interest rates and encourage lending and investment, thereby boosting economic activity.
Impact of QE on Family Offices
For family offices, QE can influence investment strategies by affecting interest rates and asset prices. Lower interest rates may lead to a search for higher yields, prompting family offices to explore alternative investments. Additionally, QE can impact inflation expectations and currency values, which are crucial considerations for wealth preservation and growth strategies.