QE3 for at least three more years?

According to Federal Reserve Chairman Ben Bernanke, the U.S. unemployment rate will probably not hit 6% until 2016.

U.S.A GlobeWith the promise of QE continuing until the labor market does “improve substantially”, does this mean QE3 could remain for at least three years? Here is the Fed’s statement from September: “If the outlook for the labor market does not improve substantially, the Committee will continue its purchases of agency mortgage-backed securities, undertake additional asset purchases, and employ its other policy tools as appropriate until such improvement is achieved in a context of price stability.” (Federal Reserve)

The Fed has also stated that they will keep interest rates low until unemployment reaches about 6.5%.

Unemployment claims
Thursday’s U.S. unemployment claims figure was 344K, 17K less than it’s forecast.

The Dollar is experiencing some weakness right now, but it could potentially turn around. Bernanke does speak again Friday morning.

For more information on what Bernanke spoke of the past few days, visit this article on the potential costs of risk-taking.

here_for_you_001







Connect_With_Winners_Edge

Get trade set ups everyday!

The following two tabs change content below.
Winners Edge Trading was founded in 2009 and is working to create the most current and useful Forex information and training available on the internet.

Winner’s Edge Trading, as seen on:

Winner's Edge Trading in the news