Federal Reserve’s Operation Twist

The US Federal Reserve has expanded the scope of its quantitative easing programme and suggested interest rates will not rise until US unemployment falls below 6.5%.

PIMCO's Bill Gross said the US economy needs to grow by 3% and upwards for several quarters in order to avoid another round of QE.

Robin McDonald, co-head of the multi-manager range at Cazenove, has said investors should not hold out for further stimulus from the Federal Reserve as he believes it has ceased its policy to weaken the US dollar.

The Federal Reserve may have held back from unleashing a third round of quantitative easing as a joint central bank effort from around the globe may be around the corner, according to North Investment Partners' John Husselbee.

ON THE US

Minutes of last month's meeting of the Federal Reserve's open market committee have raised the prospect of a third round of quantitative easing to boost the US's sluggish recovery.

F&C Thames River bond duo Peter Geikie-Cobb and Paul Thursby have warned German bunds are ‘extraordinarily' overvalued and in line for a major correction.