The US will print more money this year – here’s how to profit

The US economic recovery is slowing. But with an election looming, more spending is unlikely. That leaves money-printing. Matthew Partridge looks at how to play another round of quantitative easing.

The US economic recovery seems to have slowed. Although the percentage of people out of work fell from 9.1% last August to 8.2% in April, it rose again in May. Growth forecasts are being revised down rapidly. Consumer confidence is at its lowest in the last six months. There is a growing consensus that 'something must be done' and the fact that it's an election year just adds to the sense of urgency.

While the FT has recently argued that, "the US can and should, therefore, choose a more expansive fiscal policy", we wouldn't hold our breath. The Republicans are opposed to any major new government spending plans, and have the power to block them if necessary. Even if they agreed with a big spending boost, they wouldn't hand Obama a major propaganda victory before November.

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Dr Matthew Partridge
Shares editor, MoneyWeek

Matthew graduated from the University of Durham in 2004; he then gained an MSc, followed by a PhD at the London School of Economics.

He has previously written for a wide range of publications, including the Guardian and the Economist, and also helped to run a newsletter on terrorism. He has spent time at Lehman Brothers, Citigroup and the consultancy Lombard Street Research.

Matthew is the author of Superinvestors: Lessons from the greatest investors in history, published by Harriman House, which has been translated into several languages. His second book, Investing Explained: The Accessible Guide to Building an Investment Portfolio, is published by Kogan Page.

As senior writer, he writes the shares and politics & economics pages, as well as weekly Blowing It and Great Frauds in History columns He also writes a fortnightly reviews page and trading tips, as well as regular cover stories and multi-page investment focus features.

Follow Matthew on Twitter: @DrMatthewPartri