Fed's Bullard Says QE2 Decision Not To Come Until After Q3 GDP Announcement, Which "May Be Stronger Than Q2 GDP"
In addition to clarifying that the Fed's QE2 approach would likely be one starting in $100 MM increments, which has already been known, the question is where does it end, he makes the important observation that the decision on QE2 will not be made until the actual November 2 FOMC meeting, and certainly not before the Q3 GDP data is released on October 29, and makes the further comment (wink wink) that Q3 GDP may be a little stronger than Q2 GDP (uh oh). Oddly enough the Q3 GDP Of course, the chairman already knows what the bankers want, which is why we suggest everyone continue to frontrun each and every POMO in the fashion already described. The Fed has become the most predictable joke in the history of frontrunning and is nothing more than a "sell the news" type of criminal cartel.
Other soundbites from Bullard.
- Fed would not specify ultimate size of further easing, would assess further easing meeting by meeting
- Says in sharp disagreement with "big bang" of purchases
- price level targeting would be too large of a step at this juncture, but could be future measure
- QE an effective approach, have already seen decline in longer-term yields [not to mention Ferraris are all sold out everywhere]
- bit of a tough call on need for further easing, but data shows economy weak, job creation not happening
- fact that data has not strengthened since summer will affect committee's thinking about size and scope of any QE
- Disinflation trend has flattened out a little bit over the last couple of months [Even as hyperinflation trend has accelerated]
- Will wait for Q3 GDP data before QE2 decision