Is perhaps the US Federal Reserve sorry he mentioned more QE2?

The US Federal Reserve took stock and Spike or place since early September and the dollar plunges, first tips could consider providing another round of easing quantitative if economic recovery continues to get worse and then practically promising that it is prepared to do so.

It was a complete reversal of the beginning of the year, when the Central Bank said that the recovery came along nicely and it is time to begin to remove some of the programs of stimulation of the year last to prevent the economy from overheating causing inflation. Said that June his statement after the meeting took place, recovery continues and the job market improves progressivement.Les growing household spending.?

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Even in his statement after the meeting August, while he was concerned, "the pace of the recovery in production and employment has slowed in recent months" it did not seem too worried, said: "However the Commission foresees a gradual return to higher levels of resource use in an environment of price stability while the pace of economic recovery is likely to be smaller that had been planned in the short term."

Meanwhile, in all the States took place this year, the Committee had included the insurance that it "will continue to monitor the evolution of the financial situation and economic prospects and will use its tools needed to promote economic recovery and price stability policy."

When the stock market plunged into its August worst years, and economic reports is compounded yet, analysts started asking what "policy tools" the Fed was referring, since he had already lowered interest rates to near zero, and when tools can be utilisés.La response was that if necessary the Fed could engage in another series of "quantitative easing" similar to the program it launched take advantage of the 2007-2009 recession economy.

As reports answered positively to the news and economic markets continued to worsen, the US Federal Reserve has suggested that it would be ready to pursue such a policy change soon more.However, it seems that the US Federal Reserve as soon as assured markets in recent weeks that it engage in another series of quantitative easing (QE2) at its third meeting in November, the economic reports have begun to improve.

Surprise on the growth of the retail, manufacturing shows signs of picking up, unemployment claims fell, economic indicators have increased by 0.3% in September for the month of the third line right and 3rd quarter earnings reports include a number of improved prospects of companies.Monday morning it is that existing home sales rose 10% in September, much better than forecast an increase of 4%.

Thus, it may be that the Fed was correct for the summer expect the economy to slow down, but not in recession and then begin to strengthen encore.Auquel case the Fed may now be wishing he had never mentioned quantitative easing, and in particular that it is almost guaranteed markets that it will provide it.

There is some evidence last week that the Fed is backing away from the size of any program of quantitative easing, which some had already estimated pourrait amounted to more than $1.5 trillion - and possibly support far time where il.Par example, perhaps preparing markets of disappointment, St - Louis Fed President Bullard said last Thursday, "No. decisions have been taken... If we decide to go ahead with the quantitative easing, as we may think about 100 billion monthly supplements... and then I think that we can provide guidance at each meeting were held successive suggesting how probably the Committee believes that it will continue to buy."

Last week in markets which had taken into account in important QE2 flexibilities seem to ask if they could be dé?us.Or tumbling over $ 40 ounce .for the first time since the bottom fell from the dollar at the beginning of September, the hot stock rally was closed for the semaine.Même unusual Ascend and descend the volatility, apparently not what to expect.

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