“U.S. investment bank Morgan Stanley has cut its forecast for the possibility the Federal Reserve will stimulate the economy via quantitative easing, putting the likelihood at one in three from a previous forecast of two out of three.
The Fed has slashed interest rates to near zero but when such traditional policies don’t work, it floods the economy with liquidity by buying assets from banks, a policy technically known as quantitative easing but dubbed by critics as printing money out of thin air.
Such policy, often a hot-button issue, sends stock price rising, the dollar weakening and inflationary pressures building….”
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