Moody's: Fed QE tapering is having a big impact on emerging market countries with external imbalances - Moody's: The reduced global liquidity arising from the US Federal Reserve's gradual tapering of its stimulus measures is having a limited impact on the key sovereign credit metrics of emerging market countries - The impact of the withdrawal of quantitative easing, or QE tapering, is varying from country to country, but those with external imbalances or a reliance on external funding have been most vulnerable. Specifically, Moody's says that QE tapering is most likely to have a negative impact on countries that lack buffers such as hard currency reserves or policy tools such as a floating exchange rate.