Newton's Clay: We may see more QE from the Fed

Anna Fedorova
clock

Nick Clay, alternate manager on the Newton Global Higher Income fund, has said the Federal Reserve may yet take further monetary easing measures instead of the expected tightening.

Clay, who co-manages the £4.5bn fund with James Harries (pictured), believes the US economy is failing to respond to the economic stimulus that has been thrown at it. Despite an increasingly hawkish stance from the Federal Reserve and market expectations of a rate hike in June, the Newton managers believe the current status quo is "unsustainable". "Despite everything we have been throwing at this experiment, many developed nations, particularly the US, where it is meant to be working, are failing to respond to the economic stimulus," he said. "Therefore, unlike the consensus view, ...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Global

21st Federal Reserve vice-chair Richard Clarida on Trump, the US election and the 2% inflation target

21st Federal Reserve vice-chair Richard Clarida on Trump, the US election and the 2% inflation target

Q&A with Pimco's global economic adviser

Linus Uhlig
clock 05 November 2024 • 5 min read
AJ Bell's James Flintoft: Negativity on China has become excessive

AJ Bell's James Flintoft: Negativity on China has become excessive

Increase in appetite for Chinese equities

James Flintoft
clock 22 October 2024 • 3 min read
World's largest investment managers back in the black as AUM reaches $128trn

World's largest investment managers back in the black as AUM reaches $128trn

Thinking Ahead Institute research

Linus Uhlig
clock 21 October 2024 • 2 min read
Trustpilot