Leaviss: QE3 would cause dollar to collapse

A third round of quantitative easing in the US would lead to the collapse of the dollar, M&G's Jim Leaviss has warned.

Speaking at a Morningstar Investment Conference today, the firm’s head of retail fixed interest said with the likely end of QE2 in June, some policymakers will push for a third round of QE in the US, as many are still concerned about the high unemployment rate. "The Federal Reserve will not contract its balance sheet anytime soon. The dollar will collapse if we get a third round of quantitative easing, but this is not something that concerns the Fed in the slightest," he said. The manager also believes the US will inevitably see its credit rating downgraded and is at risk of default, ...