The question of how quickly the Federal Reserve should raise rates is dividing normally like-minded policymakers at the US central bank, pitting those who favor two hikes this year against a growing number of those who want to stop at just one.
Kevin Logan, chief US economist at HSBC says, the FOMC is quite concerned about the state of the labour market. "Job growth has slowed down quite rapidly in last four months. If we don‘t see drop in unemployment rate in next few months, we may get a QE programme later this year," he adds.
In an interview to CNBC-TV18, Kevin Logan, US economist at HSBC says, investors are worried that the situation in Europe is going to deteriorate further. “The problem is there could be a very deep and serious recession in Europe. That in-turn will affect the global economy,†he adds.
The perceived success of the ECB's LTRO operation in reducing tail risks, at least in the near-term, means that QE in Europe is unlikely this year, says Gerard Minack of Morgan Stanley.