Because it has been such a smashing success up to this point.
(CNBC) — QE3 may be coming after all.
In a dramatic turnabout, market participants now believe the Federal Reserve is more likely than not to resume purchasing assets during the next year in a third round of quantitative easing the August CNBC Fed Survey shows.
“There is no doubt that over the last week the odds of seeing another round of asset purchases has risen significantly,” says Tom Porcelli, chief US economist at RBC Capital Markets. “This doesn’t mean we think it will have any more success than QE2. What this simply reflects is a Fed with few remaining options. ”
Meanwhile, the 60 respondents — who include economists, stock and bond strategists and portfolio managers — disagree with the S&P decision to lower the US credit rating from Triple-A to Double-A plus.
Fully 70 percent of market participants gave the US the top Triple-A rating, a higher percentage than France and the UK, which are rated Triple-A.