Additional quantitative easing measures introduced by the US Federal Reserve can sustain asset prices, an investment expert has claimed.
Tim Drayson, economist at Legal and General Investment Management, observed that this may see consumers spending more, leading to increased activity later in the year.
The US faces some major hurdles in the longer-term, Mr Drayson explained.
"Exiting quantitative easing is likely to be messy and the US remains under pressure to address debt levels not dissimilar to several European countries already in crisis," he said.
He added: "If growth falters in the UK, the Bank of England could turn towards providing additional quantitative easing to keep the recovery going."
Mr Drayson remarked that these developments are not supportive for government bonds in the US or UK.
Meanwhile, the Investment Management Association (IMA) claimed recently that the amount of money consumers paid into investment funds reached a six-month high during October.
According to the IMA, this is a reflection of the fact that the sector is continuing to benefit from low interest rates .
Investment expert discusses economic outlook
Investment expert discusses economic outlook
Thu, 09 Dec 2010
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