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Does the Fed Have what the Market Wants?

Trading has been quiet so far this week, as investors anxiously await the Fed’s comments following its two-day Federal Open Market Committee (FOMC) meeting that wraps tomorrow. As we’ve talked about, the market is looking for one thing out of the Fed, and it starts with a “Q.”

Fed chief Bernanke has been elusive about initiating another quantitative easing program, but he has suggested that the bank will step in if economic conditions worsen. With significant economic data points like national unemployment weakening, some analysts expect Bernanke to announce a third round of monetary easing after the meeting adjourns tomorrow. Other analysts, meanwhile, insist that QE3 is still off the table. Instead, they predict that the Fed will either maintain its “watchdog” status quo, or initiate other forms of stimulus that are not quite as extensive as QE3. An example of something we could see announced tomorrow would be cutting the rates the Fed pays on bank deposits so that banks would be encouraged to make loans.

What do you think?

Cast Your Vote!

Will Bernanke give the market what it’s looking for tomorrow?

Yes, the economy is still fragile. Yes. The economy is weakening and now is the time when the Fed will step in with another round of quantitative easing.

Yes, the economy is still fragile. No. The Fed won't announce QE3, but we could see other forms of stimulus.
Yes, the economy is still fragile. No. The Fed won't initiate any stimulus measures, it will just do what it has been doing - watching and waiting.


Signed- Hilary Kramer

Comments (8)

dave w.:

Obama wants to be relected. The economy is still in a mess. Ben B. and the fed will be under a lot of pressure to do something to improve the economy so O. has a better chance.


Agree with Dave W. A decline in economic activity prior to the election is not in Obama's and the democrats best interest. An improving economy, for whatever reason will result in more votes for the incumbents.

Alvin J:

The stimulus that so many seem to want reminds me of investing your money over and over again until it's all gone.


Dave is right the Fed is under a lot of pressure to initiate q3 or some form. Obama will see that he does..least his chances come November is a goodbye thing. Dont u see Geithner is even in Europe just make things look good and dont cause negative impacts on the US. No wonder Mario Draghi promised "TO DO WHAT IT TAKES" thus the market rebounded!


Why spend money when there is no return, it will be worse by election time so take into account here.


Obama is a perpetual liar and the media is with him! Unless
Gov, Romney brings this fact to the American people confincingly including the fact that Obama is a failure as
president, Obama will win a second term.

looks like feds don hv ny othr way out,as f rite nw..


The feds are gambling. Watching the markets and sectors go down to create buying and gambling opportunities once again which will be paid for by the American Economy itself.

Look at California betting their money on Facebook!! What kind of idiots run a state on per chance luck?

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