The promising recovery in the housing market will continue during the fourth quarter and next year. But because housing accounts for only a tiny share of GDP, the recovery won’t transform the US from...

The Fed's decision to restart its large-scale asset purchases, this time with an open-ended agency MBS programme, is part of what could potentially be a much wider shift in the monetary policy...

QE3 could eventually leave the Fed holding nearly 30% of all mortgage-backed securities, making it a bigger player in the market than either banks or mutual funds. This suggests that, unless economic...

It is encouraging that, faced with the prospect of the US economy hitting the fiscal cliff at the end of the year, businesses have not started to hoard more cash. At the same time, though, there is...