Quote:
Originally Posted by Slava
Absolutely the amounts would matter. I haven't seen anything about QE3 at this point....so its impossible to know. We're really putting the cart before the horse though; the probability of a US recession is still a minority. Jobs figures, corporate earnings and other signs still point to growth (although not enormous).
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Tomorrow is the next scheduled FOMC meeting and Bernacke is making a speech at Jackson Hole on Aug 26. The street consensus is that the Fed will strongly word that rates increases will be on hold for an 'extended time' (some are interpreting it to mean H2 2013), and that they will start selling the short end of the curve and buying the longer end of the curve, which is in a lot of ways the same effect as QE3 without expanding their balance sheet nominally.