A Third Quantitative Easing Is Still A Possiblitity Based On The Disappointing Jobs Report

Friday, April 06, 2012 12:29
edit
A Third Quantitative Easing Is Still A Possiblitity Based On The Disappointing Jobs Report

Tags: economic indicators | economy | Federal Reserve

 

One disappointing report doesn’t ensure the Fed will do a third quantitative easing (QE3) but it certainly keeps a third round in the offing. Better economic indicators and the rising stock market since the beginning of the year had turned a bit worrisome for the equity markets since the current sentiment favors easy monetary policy.

This Website Is For Financial Professionals Only


 
An increase in interest rates or other restrictive measures can stifle a market rally—and a shaky economic recovery. Conversely, too cautious a stance by the Fed can exacerbate the situation and have a similar effect. Hopes spurred by favorable reports can create expectations which are too lofty, then disappoint, setting the stage for either a sell-off or market volatility.
 
The disappointing report could simply be the exception in a recent slate of favorable reports. The single month report is not expected to have much of a bearing on Fed policy at this point, but it could become a factor depending on how healthy other economic indicators continue to be.

 

Comments (0)

Write comment

You must be logged in to post a comment. Please register if you do not have an account yet.

busy