|
http://finance.yahoo.com/blogs/d ... ares-123505303.html
By Aaron Task | Daily Ticker – 59 minutes ago
In addition to potentially shedding light on that conundrum, the big issue for the market is whether the minutes will reveal any plans for another round of quantitative easing.
"The market cares about one thing: Whether the Fed is going to do QE3," Bianco says. "The Fed's promise to keep rates low for an extra year makes market believe it's more likely. If we get anything that throws cold water on the idea QE3 is coming, the market would react negatively."
Conversely, "stock and risk markets will respond positively" to any further indication on the timing or likelihood of more Fed asset purchases, he notes.
Judging by the action in recent weeks, the market doesn't need any more "help." But that might not stop Bernanke from pouring more gasoline on the fire, judging by the Fed's recent actions.
|
|