The age of money printing is coming to an end with the US Federal Reserve expected to begin the process of unwinding a balance sheet loaded with more than US$3 trillion in quantitative easing purchases sitting on it.

On the Economy Hub this week we talk to S&P Global chief economist Paul Sheard.

While the return to more normal interest setting and the timing of hikes gets most of the attention, the unwinding of QE is the next "big train to leave the station", he says.

And it is something the world has never seen.


"Any time you are in uncharted territory there is some concern about: how will this play?" he says.

The Economy Hub this week also looks at how markets will cope with the unwinding and we discuss the prospect of US President Donald Trump taking a more proactive role in Federal Reserve affairs as he makes key appointments.

A New York based Australian, Sheard leads a team of over 50 economists, researchers and quantitative analysts responsible for the macroeconomic forecasts used by S&P Global Ratings analysts during the ratings process and ratings performance reporting.

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- NZ Herald