Could the US become a Japan-style '20-year cycle'?

Investment managers are expecting to see the first interest rate rise in the US in over six years in the next couple of months, but could we see a further round of quantitative easing instead?

Meena Lakshmanan (pictured), head of investment solutions at Vestra Wealth, said poor economic data could prompt policymakers to hold off from raising rates in favour of further QE. She feels a further round of QE could potentially turn the US system into a 20-year cycle like Japan where the country suffered 20 years of deflation and routinely failed to achieve its 2% inflation target. She said: "QE is definitely a possibility and it could make the US more like Japan, could we see another 20-year cycle?" US GDP grew at 2.3% in the second quarter, lower than the 2.5% analysts had an...