QE3 likely to be discounted: Quam Asset Management

The Federal Reserve's Jackson Hole meeting is scheduled for later tonight. In an interview to CNBC-TV18, Quam Asset Management's chief executive Richard Harris gave a view on the awaiting signals from the meeting and what could be expected from it.

Harris feels that third quantitative easing programme (QE3) would be discounted. He said, "QE3 is likely to not be good news." Harris believes the only good news from the meeting would be that Fed's chairman Ben Bernanke might look to buy bonds a bit further out to maturity.
"We could see another reasonable lift down in the 5-10% range," he added. Below is the edited transcript of his interview. Also watch the accompanying video. Q: What is the market pricing in ahead of this meeting? Will QE3 be announced in the meeting? If Ben Bernanke does not announce any policy action as he has indicated that he will continue to hold interest rates very low, what would be the disappointment for the markets?
A: We have been talking about QE3 for two weeks. It should be assumed that is in the price. If QE3 is small and disappointing, the markets will be disappointed. If QE3 is big, then the markets would say that QE2 caused quite a lot of inflation and didn