View more on these topics

End of QE2 to have little effect on US economy, says Wade

The end of the second round of quantative easing will not have much effect on the US economy, says Keith Wade, the chief economist and strategist for Schroders.

There has been much speculation as to what effect the end of the Federal Reserve’s QE2 program will have on a fractured US economy that is beset by rising unemployment and inflationary pressures.

Wade argues that since a lot of the $600 billion stimulus package has remained in the banks, QE2 has had a “minimal impact.”

QE2 has also “helped to boost market confidence” in signalling that the government is backing efforts to support a full recovery. This has, in turn, led to some much needed downward pressure on the dollar.

As the program ends, Wade says there is likely to be some temporary volatility felt across the markets until it becomes clear that it “is not going to have a significant effect on the economy.”

“We think the dollar could be a bit firmer and the equity market might be a little bit weaker,” says Wade.


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm