US market may plunge on QE3 delay, crude price: CLSA

US economy is marking better-than-expected recovery despite facing barriers like inflation, high energy commodity prices and other internal issues. As far as the third round of monetary easing is concerned, most analysts feel that the US Federal Reserve will delay it, leaving markets amid volatility.

In an interview on CNBC-TV18, Russell Napier, consultant at CLSA said that the second round of quantitative easing failed to fulfill market expectation and thus, there are chances that the third round will get delayed due to internal politics. However, he feels that there is no option but to have another attempt on a monetary reflation. Reflation is a fiscal or monetary policy, designed to enhance a country's production and alter the effects of deflation by reducing taxes, changing the money supply and lowering interest rates.