P5_JPMorgan_Sees_75__Chance_of_More_Quantitative_Easing_This_Year

P5_JPMorgan_Sees_75__Chance_of_More_Quantitative_Easing_This_Year

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Bloomberg JPMorgan Sees 75% Chance of More Quantitative Easing This Year September 27, 2010, 7:39 AM EDT By Anchalee Worrachate 1.Sept. 27 (Bloomberg) -- JPMorgan Chase & Co. said there’s a 75 percent chance that the Federal Reserve will start another round of asset purchases before the end of this year to boost the economy, supporting Treasury bond prices. The U.S. central bank may spend “a few hundred billion dollars” on a so- called quantitative easing program, and it’s likely to keep the official rate on hold until 2012, said Pavan Wadhwa, head of European interest- rate strategy in London at JPMorgan. 2.“The Fed is likely to do more quantitative easing, and that will pull Treasury yields lower,” Wadhwa said in an interview. “It’s hard to argue that these bonds are overvalued when inflation and resource utilization rates remain very low, and the unemployment rate is high.” The Federal Open Market Committee’s Sept. 21 statement said “it will continue to monitor the economic outlook and financial developments
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P5_JPMorgan_Sees_75__Chance_of_More_Quantitative_Easing_This_Year

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