The US stock market has shown a deep retracement so far. Moreover, the recent macroeconomic stats suggest an economic slowdown. Therefore, more and more traders and investors start speculating about another round of quantitative easing. The Federal Reserve officials are divided over QE3.
According to the reports provided by 12 US economic regions, the overall US economic performance was moderate in April – May 2012. Consumer spending stays the same. Auto dealers report about higher demand for new cars. Moreover, the conditions in the country’s construction sector seem to have improved. Manufacturing production keeps growing in all the 12 regions. Tax rebates and governmental programs aimed at creating new jobs will further stimulate the US manufacturing sector. For the sake of reference, the manufacturing industry employs 9% of the population and accounts for 12% of the national GDP and 60% of the national export.
The FOMC will decide on the central bank’s further monetary policies during the forthcoming meeting scheduled for late June.
According to , if to consider that the US economy is mainly hindered by external factors, the effectiveness of another round of quantitative easing is questionable.
