Expect QE3 from Fed next week: Trevor Williams

The US federal reserve will meet on Wednesday and Thursday this week. The markets are broadly expecting another round of stimulus from the Fed. Trevor Williams, Chief Economist - Economic Research, Lloyds-Bank Wholesale Banking & Markets (LB WBM), is also expecting announcement of further quantitative easing which will involve the Fed buying a mix of govt securities and mortgage backed securities from the market. Williams also expects the Fed to extend its low rate guidance untill the middle of 2015 as a way to give interest rate guidance to the markets.