Wall Street investment bank Goldman Sachs believes the Fed will do another round of quantitative easing.
Goldman said there is a case to be made for the Fed to announce further easing at its next meeting in April, since that is just ahead of the expiration of the Operation Twist program.
Later this week, attention will turn to U.S. non-farm payrolls data, which could shed further light on the strength of the U.S. economy and the need for further monetary easing in the U.S.
French lender Societe Generale said in a report earlier that fears that the U.S. economy may lose momentum in the second half of the year could build the case for a third round of stimulus from the Fed.
“We…expect the U.S. economy to surprise on the downside over coming months, which should result in the implementation of QE3,” the bank said.
