July 30, 2012
Weak U.S. data and mounting euro-zone concerns have raised expectations that the U.S. Federal Reserve will embark on another bout of bond-buying to stimulate the economy.
But Fed watchers surveyed by Dow Jones Newswires generally feel the central bank isn’t ready to launch a third round of so-called quantitative easing, or QE3, just yet. Most say they believe such an announcement is unlikely at Wednesday’s conclusion of the Fed’s two-day policy meeting.
A key factor in that cautious assessment: Friday’s report that U.S. gross domestic product expanded at an annual rate of 1.5% in the second quarter. Although that is far from a stellar economic performance, it beat forecasts of a 1.4% gain and, for many, was strong enough to suggest the Fed’s Open Market Committee would wait rather than pull the QE3 trigger at this week’s meeting.
- Fed hints at quantitative easing 3 – RT (rt.com)
- I.M.F. Warns of ‘Sizable Risk’ of Deflation in Euro Zone (nytimes.com)
- Federal Reserve Pumps Another $267 Billion Into U.S. Economy (freeinternetpress.com)
- Goldman Sachs, Bank of America Say Fed to Hold Rate – Bloomberg (bloomberg.com)
- U.S. Federal Reserve boosts stimulus, but keeps some powder dry as economy weakens (business.financialpost.com)
- U.S. Federal Reserve Officials: QE3 Necessary to Boost Economy (valuewalk.com)
- Federal Reserve considers next step (upi.com)
- Caterpillar Says QE3 Is Coming, But Not Soon Enough (CAT) (businessinsider.com)
- ‘Audit the Fed’ bill set for House vote this afternoon (jeenyuscorner.com)
- Near-term Central Bank Intervention? (safehaven.com)