To QE3 or Not to QE3?

10-Apr (BusinessWeek) — With every 200,000-plus jobs report that has come out over the past few months, the odds of the Federal Reserve embarking on a third round of monetary stimulus (known as quantitative easing, or QE3) seemed to get a little slimmer. In Bloomberg’s most recent survey of economists, conducted in March, just after we learned the economy added 227,000 jobs in February, 61 percent of respondents said the Fed would not pull the trigger on QE3, up from 50 percent in January. Recent surveys of primary dealers by the New York Federal Reserve show a similar decline.

After Friday’s weaker-than-expected jobs report, there’s a renewed sense that QE3 may be necessary to keep a waning recovery on its feet.

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Macquarie’s Gibbs Expects Fed QE3 by End of July
10-Apr (Bloomberg) — Richard Gibbs, global head of economics at Macquarie Group Ltd., talks about the outlook for the U.S. economy, Federal Reserve monetary policy and its implications for global financial markets. Gibbs also discusses China’s economic growth.

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