Height of QE equal to minus 2% rate

Height of QE equal to minus 2% rate. The economists, Jing Cynthia Wu and Fan Dora Xia, used a concept known as the shadow rate to gauge the impact of quantitative easing and the Fed's forward guidance on the likely path of interest rates. Their findings? As of December, Fed policy was the equivalent of cutting the benchmark interest rate to minus 1.98 percent, according to Wu at the University of Chicago Booth School of Business and Xia at the University of California at San Diego. This could help to settle the debate on whether the Fed has begun tightening. (VIEW LINK)