Former CIO of Singapore's sovereign wealth fund: If risk assets fall sharply, the Federal Reserve may resort to quantitative easing

Jeffrey Jaensubhakij, a former group chief investment officer at the Government of Singapore Investment Corporation (GIC), said that if risky assets such as U.S. stocks crash, the Federal Reserve is likely to engage in quantitative easing (QE) measures. Jaensubhakij said, "If they are indeed in a bubble state and they burst - will the Fed really implement an exponentially enhanced version of quantitative easing? I think there is a good chance of that happening", which will provide a buffer for commodities. "In the coming months, the market will become more and more aware that large volatility is coming because this state of affairs cannot be sustained," he said. Jaensubhakij said investors need to think about whether they can get the same return from artificial intelligence bets as capital expenditures increase, and how to finance those expenditures. More broadly, he warned that rate cuts were "feeding the market".