...QE Exit Biggest Risk to Recovery, Say Conference Delegates A majority of attendees at Fitch Ratings' March 2014 sovereign credit briefings in Singapore and Hong Kong thought that mismanagement of central banks' exit from their highly accommodative policies is the biggest risk to the global economy (Chart 1). Fitch polled 232 conference attendees in Hong Kong and 156 in Singapore. Sentiment on global macroeconomic issues was broadly consistent across the two locations, with 55% of attendees polled in Hong Kong, and 50% of those polled in Singapore, thinking that mismanagement of tapering by the Fed, or the pull-back from quantitative easing by other major central banks, was the biggest risk. Too slow an exit, leading to asset bubbles and inflationary pressures, was seen as a bigger risk than too fast an exit which leads to a spike in yields and financial market volatility (Chart 3). Less than one-third of audience members in either city considered that the Eurozone crisis is finally over...
