Whenever Quantitative Easing is used in any financial market it creates temporary hyper-inflation. Banks, not the Federal Reserve Bank, FRB decide how QE is used. Banks have and will continue to be a driving force in speculation in various financial markets and industries.This is one of the least understood or discussed side effects of using Quantitative Easing by the Federal Reserve Bank. FRB has attempted control the economy via lowering or raising of interest rates or QE. Both when examined closely do not appear to function as many promoters of QE or interest rate manipulation state.
However, the cost was problematic to industries who needed reasonable energy cost. This damaged the airline industry, and this weakness has put many airlines how near bankruptcy as they struggle to survive this pandemic. What happens in one decade can affect the new decade.The first QE was in 2009 – 2010 the second round of QE in 2011, and a third larger QE between 2013 -2014 after the official recession had ended but banks were still struggling. There were no restrictions on how the Banks used the QE money. the FRB expected the banks to use the money for helping the economy recover even faster. But banks wanted to do short term derivatives and other higher risk investments.