24th August 2011
Investors are bracing themselves for a significant shift in US monetary policy to be unveiled when Ben Bernanke speaks at the Jackson Hole summit on Friday (August 26th).
The chairman of the Federal Reserve is under pressure to deliver new measures to revitalise the US economy at the central bank's annual symposium in Wyoming.
In anticipation of a fresh stimulus effort being unveiled, the Dow Jones industrial average rose by more than 300 points to record its third best day of the year on Tuesday.
The surge came despite another round of disappointing economic data and a 5.8-magnitude earthquake in Virginia.
Many investors are keen for Mr Bernanke to sanction a third round of quantitative easing (QE3) in his speech, although analysts have warned that the Fed is likely to wait a bit longer before going ahead with such measures.
"I think we'll see QE3 because America needs growth, but I don't think we'll necessarily get it on Friday," Neil Dwane, chief investment officer for Europe at RCM, told Reuters.
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