Fitch Ratings Expects Roll Back of QE by Federal Reserve in 2022

Fitch Ratings expects the United States Federal Reserve will begin next year reducing the quantitative easing (QE) measurements aimed at combating the negative economic impacts of the Coronavirus pandemic.

The move could come in the form of decreasing asset purchases in 2022, which the ratings agency expects it will be announced during the second half (H2) of 2021.

The Fitch report also noted that emerging markets are facing a risk of higher borrowing costs due to the rising Treasury bond yields.