NEW YORK (Reuters) – Wall Street’s top bond firms still see a 50 percent chance that the Federal Reserve will launch a third round of quantitative easing to boost the U.S. economy even after it extended its current stimulus program on Wednesday.
The median forecast in a Reuters poll of 17 primary dealers or firms that do business directly with the Fed showed a 50 percent chance of a third bout of large bond purchases that would expand its balance sheet. A similar poll conducted on June 1 also showed a 50 percent chance of a third round of quantitative easing, or QE3.
Ten of those surveyed see the Fed launching QE3 before year-end. Four of them see it happening in 2013, while one dealer firm said it could occur either this year or next.
(Reporting by Richard Leong, Luciana Lopez, Anna Louie Sussman and Pam Niimi; Editing by Gary Crosse)
