QE2 an 'aggressive act' to devalue dollar: Schroders' Wade

Schroders chief economist Keith Wade has labelled the Federal Reserve's $600bn QE2 programme as an "aggressive act" to devalue the dollar.

Wade says devaluing the dollar is essential in boosting the country's export market, which is vitally important in stimulating growth. However, with most of the emerging world keeping currencies low, Wade says it is hard for developed economies to increase exports. "The US is kind of setting up the emerging world to appreciate their currencies," Wade told the Schroders International Media Conference. "We are going to see a large part of the $600bn of quantitative easing go into the emerging world. It is quite an aggressive act by the US. "They say it is not about dollar, but tha...