Last Updated : August 22, 2011 22:37
Further fed quantitative easing during second half
By Allen Sykora BNP Paribas says it looks for the Federal Reserve to undertake further quantitative easing some time before year-end. “Our U.S. economists now believe that a U.S. recession is coming and, accordingly, expect more QE at some point during H2 2011,” the bank says.
However, its currency team also notes that a Wall Street Journal report hints that disappointment is likely to come from a speech by Federal Reserve Chairman Ben Bernanke at Jackson Hole, Wyo., conference Friday, with the Fed likely to be cautious and unlikely to rush into a third round of quantitative easing.
Concludes BNP: “Any commitment to QE3 in his speech is likely to reduce risk premiums, bolster equity markets and support growth currencies against the USD – especially AUD, NZD and CAD.”
By Allen Sykora of Kitco News; asykora@kitco.com
NCDEX CHANAJUN12 20 June 2012
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