Last Friday, Ben Bernanke delivered his much-anticipated speech at the Federal Reserve's annual symposium in Jackson Hole, Wyoming. The speculation before the speech was whether the Fed Chairman will hint at another round of quantitative easing (QE3). After the speech, it is quite clear that the Fed is open to another round of QE3. The big question now is the timing of QE3.

QE3 Likely

In his speech, the Fed Chairman defended the nontraditional policies (quantitative easing, Operation Twist) implemented by the central bank to spur economic growth and restore confidence in financial markets. Bernanke noted that there are potential costs of implementing nontraditional monetary policy measures. However, he said that these costs are manageable and therefore further use of such policies, if economic conditions warrant, cannot be ruled out.

Bernanke's remarks make it quite clear that the Fed is ready for QE3. The timing of QE3 though will depend on how the U.S. economy fares in the coming months.

I think QE7 will really turn things around.

wake_up_bomb wrote:
lmao!!!

Federal Reserve to buy more debt to boost US economy

The US central bank has announced it will resume its policy of pumping more money into the economy via so-called quantitative easing.

The Federal Reserve said it will buy "additional agency mortgage-backed securities at a pace of $40bn per month".

The central bank also said it could increase the size of its purchases if the economy does not improve.