FOMC Meeting: QE3 Possibility?

Thursday afternoon at 2:15pm EST the Fed will have their quarterly Press Conference. Their conference will follow the 12:30pm release of a FOMC statement and a 2:00pm release of the FOMC economic projections.

The summer doldrums have come to an end. Investors have turned their eyes back to the computers and are ready to through money into the market. Liquidity is high. The past several Fed meetings have been accompanied by expectation of QE3. Economists, corporations, and investors alike are speculating on Thursday’s FOMC meeting. If more quantitative easing is announced Thursday, the world will easily be shaken as it’s Reserve Currency decreases in value.

Thursday’s meeting will have my full attention. Recent expectations have not fallen through, for example: Jackson Hole. Although Bernanke assured the Fed is willing to “provide additional policy”, he did not say anything like “the Committee intends to purchase a further $700 billion of longer-term Treasury securities”.

It is possible that Bernanke wanted to wait until a formal FOMC meeting to announce further stimulus. My thought is that a stimulus policy could be announced Thursday or, strong hints of one.

According to a Wall Street Journal blog , UBS and J.P. Morgan expect QE3 to be announced Thursday while others such as Goldman Sachs think of it as a possibility.

Take a look at today’s EUR/USD chart below and feel welcome to leave your thoughts below on where you think it will end up if QE3 is announced.

With stimulus possibilities and a soon-to-come election, the Dollar is in the spot light right now. You’re welcome to leave your thoughts below. What do you think will be said Thursday?

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  • Hey Jester, can’t know for sure. Maybe tomorrow will be the big day, maybe not. We’ll see Thursday!

  • jesterx

    +1 thanks for that, and your posts. I have been following the guys from http://sentiment-trader.blogspot.com.au and think they are awesome. They think the next few days as typical FOMC days, slow wet and weak. Just sayin.. I hope not but.