Markets await US Fed stimulus decision

Sep 13, 2012

Economists put the odds of a third round of bond buying by the Federal Reserve at 65 per cent

GLOBAL markets are waiting for a Federal Reserve decision on another round of monetary stimulus to boost the US economy. Economists put the odds of a third round of bond buying at 65 per cent, up from 60 per cent in August, according to a Reuters survey. But some analysts believe the markets have already priced in new stimulus, and could fall up to four per cent if none materialises. "The market is somewhat nervous ahead of tomorrow's Fed decision, and rightfully so," said Peter Cardillo, chief market economist at Rockwell Global Capital in New York.

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