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Primary Dealers see 50/50 chance of more Fed QE! | Reuters

(Reuters) – Wall Street economists see an increased chance the Federal Reserve will launch another round of monetary stimulus to support the U.S. economy, following data showing jobs growth slowed markedly for a third straight month in May.

The median of forecasts from 15 primary dealers – the large financial institutions that do business directly with the Fed – gave a 50-percent chance the central bank would eventually launch another round of quantitative easing, known as QE3.

A similar poll done on May 4 resulted in the median of forecasts from 14 primary dealers giving a 33 percent chance of the Fed eventually undertaking QE3.

The latest poll was conducted on Friday after the government said employers added only 69,000 jobs to their payrolls last month…

via Wall St boosts QE3 expectations after May jobs data | Reuters.

WOW! Now there’s helpful news. There’s a 50/50 chance that the Fed will do more QE. I wonder what science they used to quantify that. – Lee Adler

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