It is going to be interesting in 2 days when the Fed has its next scheduled meeting. Things for a couple of weeks seemed like they would stick to what is currently being run due to optimism on the part of the Fed. Recent news, however, has turned that sentiment and the market seems to be expecting further easing. It will be interesting to see how the Fed reacts- the heavy influence is certainly the Euro crisis.
As reported by Zerohedge, Goldman released the following: " If it is specified as a "stock" of purchases, we would expect a similar size as in past programs, i.e. $400bn-$600bn over 6-9 months. However, it is also possible that the program would be specified as a "flow" of purchases of perhaps $50bn-$75bn per month."
Looks like QE3 could be around the corner. With inflation at below 2% and Europe doing what it is, it might not be the worst of ideas.
edit: meeting is tomorrow not 2 days
As reported by Zerohedge, Goldman released the following: " If it is specified as a "stock" of purchases, we would expect a similar size as in past programs, i.e. $400bn-$600bn over 6-9 months. However, it is also possible that the program would be specified as a "flow" of purchases of perhaps $50bn-$75bn per month."
Looks like QE3 could be around the corner. With inflation at below 2% and Europe doing what it is, it might not be the worst of ideas.
edit: meeting is tomorrow not 2 days
