USIn 2013, a strong increase in asset prices boosted US household net worth to a new record level. The Federal Reserve’s quantitative asset purchases played a key role in the dramatic rebound in household wealth and liquidity positions over the past five years. But sustainable gains rest on the Fed’s ability to exit its current policy without triggering financial instability.
EuropeWith growth picking up only gradually and inflation likely to remain below target for the foreseeable future, it would be premature to rule out further monetary easing in the euro area. But following this week’s hawkish press conference, the hurdle for further action is probably higher than we thought.