Fed Likely to Tap QE If Risk Assets Plunge, Ex-GIC CIO Says

The US Federal Reserve is likely to resort to quantitative easing if there is a crash in risk assets such as equities, said the former investment chief of Singapore’s wealth fund.

The potential for a return to such monetary easing policy is helping to drive a surge in gold prices, former GIC Pte Group Chief Investment Officer Jeffrey Jaensubhakij said at the Bloomberg Investment Management Summit in Singapore on Tuesday.

“If they are in a bubble and they burst — is the Fed actually going to do QE to the power of X again?,” Jaensubhakij asked. “I think there’s a ...