BEIJING (MarketWatch) -- The world is likely to see a third round of quantitative easing in the U.S. soon, but the possibility of the U.S economy suffering a double dip isn't big, People's Bank of China adviser Li Daokui said Tuesday (9 Aug 2011).
Current market volatilities are purely caused by "blind actions" of U.S politicians, which lead to excess short-term fiscal austerity in the U.S., Li said on his personal microblog.
"The QE3 is to be launched soon, which is actually a second bailout, and the financial market will rise quickly," he said, adding that high-quality assets and currencies will benefit from such easing, though long-term Treasurys will fall.
"A double dip in the U.S economy is not likely, as asset prices will recover fast," he said.
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