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Bank of America U.S. economist Michelle Meyer told CNBC today that she and her team predict another round of monetary policy easing this fall, regardless of political concerns.She argued that the Fed is waiting to see how economic data shapes up before moving forward on another round of easing:
“We think that Bernanke is going to operate outside of the political spectrum, so he’s going to do what he thinks is most appropriate to support the economy. Our baseline view is that the Fed is in wait-and-see mode right now. They’ll stop Operation Twist at the end of June, as is planned. They’ll see how the economy fares.
We think that growth will slow. We’re worried about the fiscal story, which means it’s going to prompt the Fed to do additional quantitative easing sometime in the fall, whether or not the elections happening or not.”
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