It is difficult to see a smooth exit out of quantitative easing in the world’s largest economy, the U.S. or Japan, said Charles Dallara, former managing director of Washington-based bank lobby group, the Institute of International Finance.
“We’re expecting too much of the Federal Reserve, and Bank of Japan, and I’m growing increasingly concerned that we’re not going to find an easy and smooth exit out of QE in the U.S. or for that matter in Japan,” Dallara, who played a central role in the European debt crisis by representing private sector bondholders in Greece debt restructuring negotiations, told CNBC Asia’s “Squawk Box” on Monday.
U.S. stock and bond markets were mired by volatility last week on concerns the country’s central bank may taper its bond purchase program later this year if data show the economy is on a sustainable growth path.
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