Tags: Citi | Fed | easing | Stimulus

Citi Survey: More Fed Stimulus Isn’t Likely

Wednesday, 11 Apr 2012 07:59 AM

Chances that the Federal Reserve will roll out a third round of asset purchases from banks designed to spur economic activity and hiring are fairly remote, a Citi survey finds.

A poor March jobs report showing the economy added a net 120,000 jobs has sparked talk of a third round of such asset purchases, known technically as quantitative easing (QE) but charged by critics as printing money out of thin air.

Since the downturn, the Fed has injected $2.3 trillion into the economy via two quantitative easing rounds, known as QE1 and QE2 — and talk of a QE3 is brewing.

Editor's Note: You Owe It to Yourself to Know What Obama and Bernanke Are Hiding From Americans

"Over 90 percent no longer expect a U.S. recession this year and nearly 80 percent do not expect QE3 to be initiated this year," the Citi survey of big institutional clients finds, according to Business Insider.

The S&P 500 broad stock index should finish 2012 at around 1,422, up from 1,347 in January, while nearly 75 percent expect a close above 1,400, Business Insider adds.

More than 80 percent of those surveyed will channel additional money towards equities, with nearly 40 percent favoring U.S. stocks, the survey finds.

S&P 500 companies have posted strong earnings in recent quarters, and some experts say that trend will continue as first-quarter earnings start to roll out.

"Are we going to see 5-10 percent growth in earnings by almost all of the S&P 500? Probably," investor and strategist Dennis Gartman, author of The Gartman Letter, tells CNBC.

Current calls of up to 2 percent growth in numbers are "probably a bit on the downside," Gartman adds.

Editor's Note: You Owe It to Yourself to Know What Obama and Bernanke Are Hiding From Americans

© 2015 Moneynews. All rights reserved.

Around the Web

Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
Zip Code:
Privacy: We never share your email.

You May Also Like
Around the Web
Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

© Newsmax Media, Inc.
All Rights Reserved