BERNANKE: NO QE3 ON THE HORIZON
In today’s prepared comments to Congress Dr. Bernanke made it clear that QE3 is not on the horizon. He did, however, maintain an accommodative posture. The key points from the testimony:
“The target range for the federal funds rate remains at 0 to 1/4 percent, and the forward guidance language in the FOMC policy statement provides an indication of how long the Committee expects that target range to be appropriate.”
“The Committee reviews the size and composition of its securities holdings regularly and is prepared to adjust those holdings as appropriate to promote a stronger economic recovery in the context of price stability.”
I take that to mean, we’re still very worried about downside risks to the economy and we’re ready to act, but not seeing any need to act soon. He appears cautiously optimistic. This all means QE3 isn’t around the corner which is consistent with the latest CPI data and economic improvement.
Ah, you must be looking in the wrong spot then, as I can see it out there as clear as day, just in front of QE4 and QE5.
Fancy a friendly wager, I say QE3 is inevitable: inflate or die.
What say you?
Ah…er…QE3 already happened folks.
Only it was called a SWAP (US TSY securities for Euro trash).
Kinda slipped that one by most of you.
I guess Benny Bernanke fears that QE3 pushes banks deeper in into trouble.
Old dog – when you are right you are right. Stealth QE and wallah 10% > gain in stocks. In the new world why do stock rise – the Fed…..
Bernanke needs to start lifting rates and begin to pulling liquidity out of the system. There clearly is a shortage of safe assets which the world needs as well as a completely changed dynamic of international capital flows.
It’s all smoke and mirrors at this point. Only reason that he is doing everything he can to not give sign that QE3 is close is the up coming election. Once that’s done, look out. It’s coming.
Not politically savvy to have oil spike. Chairsatan is only dampening LTRO liquidity effects
I’m not sure whether Dr Bernanke would really share his true thoughts in front of congress – its a pretty tough crowd – look at the crap Dr Paul threw at him. Always possible he’s more interested in more QE than he lets on to them…
This is just amazing what they will do…Old Dog is right on. They are creative in what they have done. I’m not 100% sold on MMT because MMT only exist in a world where the Federal Reserve and Gov has control over the economy. Its a system that doesn’t take any real work, watch the Gov/Fed Reserve make a move and invest on the spike. Unlike a free market where real supply and demand must be equated. I now see Ron Paul as not looney for wanting the U.S. on a sudo gold/commodities standard. The problem is the status quo doesn’t like it because bubbble are gone, less control over the markets which means less profits. Nothing wrong with going back to free markets, supply and demand based.