| The Fed's latest dose of "monetary medicine" is no surprise to us and the market. The Fed has initiated the third round of QE (bond purchases of US$40bn per month), as well as extended its low-rate pledge from at least "late-2014" to at least "mid-2015". With this latest monetary punch, the pressure is piling up on lawmakers to strike a deal to prevent the "fiscal cliff". Uncertainties over the tax policy, government spending and the future of regulations are the real impediments to faster economic growth.RDD |
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