JPM sees 75% chance of more QE by Fed

clock

Investment banking giant JPMorgan says there is a 75% chance the Federal Reserve will begin another round of quantitative easing by end of this year.

Pavan Wadhwa, head of European interest-rate strategy in at JPMorgan told Bloomberg the Fed may spend "a few hundred billion dollars" to boost to the stuttering US economic recovery. He also says the central bank is likely to keep the official rate on hold until 2012. "The Fed is likely to do more quantitative easing, and that will pull Treasury yields lower," Wadhwa says. "It's hard to argue that these bonds are overvalued when inflation and resource utilisation rates remain very low, and the unemployment rate is high." In its last statement, the FOMC said it would continue to ...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Bonds

Almost all investors and wealth managers plan to increase high yield focus in next two years

Almost all investors and wealth managers plan to increase high yield focus in next two years

Stock market correction expected

Sorin Dojan
clock 07 July 2025 • 1 min read
Global ESG backlash has not eroded demand for UK green bonds

Global ESG backlash has not eroded demand for UK green bonds

This year's auctions oversubscribed

Sorin Dojan
clock 03 July 2025 • 4 min read
Federated Hermes launches Global Short Duration Bond fund just as asset class booms

Federated Hermes launches Global Short Duration Bond fund just as asset class booms

Responding to ‘increased investor demand’

Eve Maddock-Jones
clock 25 June 2025 • 2 min read
Trustpilot