Analysts at Capital Economics name 3 reasons why they think the Federal Reserve won’t launch the third round of quantitative easing this year.

Firstly, the slowdown of US economy may be caused by the temporary factors such as the surge of commodity prices and the supply disruptions after Japanese earthquake. The specialists underline that Bernanke still expects US growth to pick up. The Fed’s chief gave no hint of more quantitative easing and even admitted that “monetary policy cannot be a panacea”.

Secondly, Capital Economics notes that after the Fed’s bond purchasing program the risk of inflation is larger than the deflation one that was taken into account when QE2 was planned last year.

Finally, according to the economists the longer-term costs of QE2 could now be seen as greater than its benefits. The analysts say that easing didn’t do much to decrease the long-term interest rates. Moreover, it may have encouraged the growth of commodity prices.

As a result, Capital Economics thinks that there’s a little chance of an additional program of QE in the next few months. However, the specialists don’t entirely rule out such possibility in a longer time period as next year there may be a necessity to offset the effects of fiscal consolidation.