Home QE3 – Chances of Very Slim
Forex Bits

QE3 – Chances of Very Slim

Over the weekend, FOMC member James Bullard joined other Federal Reserve officials by saying that when QE2 will end its course in June, no new scheme will be offered – no QE3.

Bullard even  said that QE2 might end sooner than expected:

“If the economy is as strong as I think it is then I think it may be reasonable to send a signal to markets that we’re going to start withdrawing our stimulus, and I’d start by pulling up a little bit short on the QE2 program,” Bullard said. “We can’t be as accommodative as we are today for too long, we’ll create a lot of inflation if we do that.”

He joins Charles Evans,  Dennis Lockhart, Richard Fisher,  Narayana Kocherlakota, and of course  Charles Plosser, which even hinted about raising the rates in a very hawkish speech on Friday. This speech pushed the dollar higher across the board.

This additional support from James Bullard could help the US dollar in the new week.

For the major events this week, including the almighty Non-Farm Payrolls, see the Forex Weekly Outlook.

Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.