Pimco’s Neel Kashkari said the Fed will start QE3 due to worsening unemployment, lower equity prices and risk of shocks from Europe. Europe take years to solve as Greece exits from the euro region, though not necessarily after the country’s elections.

BlackRock’s Robert Doll said the Fed will need to see significantly weaker economic growth or a bust in the euro before embarking on another round of bond purchases – QE3 is for an emergency, an insurance policy.

Read the full article at