InvestIdeas

It's likely to be QE1.5 and not QE2.

sept fomc minutes revealed that further QE may happen before long....

causing some volatility in markets at 2am (our time)

amrket reacted in the opposite direction of in the first 5mins of news release....where it will go from here??? duno man...

imo, it's a case of "now news"..."any news" will do to move the market syndrome...i think we will see the general direction better after 30 mins....

FOMC Minutes Indicate Fed's Willingness To Provide Additional Stimulus 10/12/2010 2:33 PM ET

(RTTNews) - Members of the Federal Reserve are prepared to take further steps to support the sluggish economic recovery, according to the minutes of the September Federal Open Market Committee meeting, although most agreed that they would need additional information before making a move.

The minutes of the meeting, released Tuesday afternoon, showed that many FOMC members found the recent and anticipated progress toward meeting the Committee's mandate of maximum employment and price stability to be unsatisfactory.

However, they noted that data received since the previous Fed meeting has signaled that the economic recovery is continuing, albeit slowly, with the more-recent data coming in above expectations.

The FOMC members subsequently saw merit in accumulating further information before reaching a decision about providing additional monetary stimulus.

"In addition, members wanted to consider further the most effective framework for calibrating and communicating any additional steps to provide such stimulus," the minutes said.

At the same time, the minutes said that several FOMC members noted that it would be appropriate to take action "soon" unless the pace of economic recovery strengthened or underlying inflation moved back towards levels determined to be consistent with the mandate.

Following the meeting, the Federal Reserve announced its widely expected to leave interest rates unchanged at a record low of zero to 0.25 percent.




The minutes showed that nearly all of the members agreed that the accompanying statement should reiterate expectations that economic conditions will warrant exceptionally low rates for "an extended period."

Kansas City Fed President Thomas M. Hoenig continued to dissent, however, arguing that continuing to communicate that expectation would create conditions that could lead to macroeconomic and financial imbalances.

Hoenig also said that he does not believe that additional asset purchases by the Federal Reserve are required to support the Committee's policy objectives.

Meanwhile, the other members generally agreed that the statement should indicate that the Fed is prepared to provide additional accommodation if needed but that it would depend on future information about the economic situation and outlook.

Last week's report showing a drop in total employment in the month of September helped to solidify expectations that the Fed will enact additional quantitative easing measures, including a new round of asset purchases.

Commenting on the employment report, Rob Carnell, chief international economist at ING Financial Markets, said, "With data like this, it will take a substantial pickup in inflation before the November 3 FOMC meeting to prevent an announcement of more quantitative easing."

Ben happy. Everybody happy.

Inside the smile is a long knife.

Bernanke: There Appears To Be A Case For Further Support 10/15/2010 8:26 AM ET
(RTTNews) - The Federal Reserve stands ready to support the sluggish economy with further monetary easing measures, the nation's top central banker said Friday morning at the Boston Fed's annual conference.

In response to the threat of disinflation and a stagnant economy, the Fed is widely expected to expand its asset purchase program following its next meeting, on November 3.

Bernanke's remarks did not address specific accommodative measures that may be taken by the central bank.

There would appear to be a case for further action, Bernanke said in prepared remarks, noting that overall economic growth has been proceeding at a pace that is less vigorous than policy makers would like.

"Growth next year seems unlikely to be much above its longer-term trend," he observed. "If so, then net job creation may not exceed by much the increase in the size of the labor force, implying that the unemployment rate will decline only slowly."

"Prolonged high unemployment would pose a risk to consumer spending and hence to the sustainability of the recovery," Bernanke warned.

Central bankers also have to seriously consider the danger that inflation can be too low.

Policy makers may have few other accommodative options other than the crank up the printing press, as the Fed's key interest rates have been held near zero for more than a year.




Further easing measures have been priced into the stock market in recent weeks, helping the major US indices reach their highest levels in five months.

Meanwhile, the dollar has been battered, slipping to a yearly low against a basket of key majors amid expectations the Fed will be far more supportive than central banks elsewhere.

The Fed acknowledged at its September 21 policy making meeting that the economic expansion slowed in recent months and that inflation remained low.

According to the minutes of the that meeting, the labor market situation continued to improve only slowly, and housing activity, which had been supported earlier in the year by the availability of homebuyer tax credits, softened further in July.

by RTT Staff Writer

LenaHuat on 28 Sep wrote:It's likely to be QE1.5 and not QE2.

The HK market is waking up to this today

ah ben says "relag joe...you'll get your money"

iam802 wrote:Ben happy. Everybody happy.

AhBen has 2 remarkable lines on his palms - a career and life line each.
His life and heart lines do not meet, indication of an independent streak. Possibly a maverick although in a way not ostensibly so.

marriage line not so ideal too