Weekly Fundamentals - QE2 Decisions the Key Event Risk Next Week

The story in financial markets remained largely the same in recent weeks. Fed's return to QE next week is a certain event. The unknown now is the size and the timing of bond purchases. The Fed has considered a wide range of options. For example, the Fed may start the program by announcing $500B, spanning over several months. It may also purchase $75-100B per month. The plan will be review in every FOMC meeting and should not stop unless economic outlook improves. Economists forecast that the ultimate size of the program will be around $1-2 trillion.

Read the original post:
Weekly Fundamentals - QE2 Decisions the Key Event Risk Next Week

Leave a Reply