Is QE 4 Right Around The Corner
Over the past few daycheap patagonia fleeces, the market made one of the most breath taking rallies in history.
The S 50patagonia better sweater womens vest0 rallied over 140 points from the October 15 intraday low, all in just 7 days. At one point, the VIX also fell by more than 10% in 3 consecutive days, something that has patagonia portland oregon new homes2never occurrepatagonia better sweater red deliciousd befpatagonia portland oregon new homes1ore.
While the exact cause of this rally is unknown, it stands to the reason that the market rallied because that the Federal Respatagonia portland oregon new homes3erve may launch QE 4 during the next FOMC meeting next week.
QE 3 s endQE 3 is set to end on the October 27th, when the last batch of the monthly $10 billion Treasury securpatagonia jacket reviewity purchases are to be made. The Federal Reserve has been tapering its Treasury security purchases by regular intervals since January 2014, and there is supposed to be no more purchases after that. economy is relatively healthy. The economy is close to full employment with unemployment at 5.9%. GDP is also growing at a healthy rate, with GDP growing at an annualized 4.6% last quarter.
Even though the economy is healthy and unemploypatagonia portland oregon new homesment is low, the Federal Reserve is still concerned. The Fed, in partnew $90 patagonia mens nine trail vesticular, seems to be concerned about the market correction that occurred this month. The Fed likely feared that if the market plunge was severe enough, the actual economy would be damaged by the market inflicting a reverpatagonia discount code avisse wealth effect on investors and the market decreasing corporate capex by damaging corporate confidence.
Indeed, on October 16th, St Louis Fed President James Bullard said that the Fed should consider delaying QE s end until the data warranted it.
Easing flexibility and expepatagonia everlong review kenmorectationsThere dpatagonia everlong review of soundoes seem to be more room for QE 4. Inflation is simply not a problem right now. was 1.7%, below the target 2% rate. Inflation expectations are weak as well. economy.
Because the Fed is concerned about the market and has inflation flexibility, the Fed may launch QE 4 next week.
Still even if the Federal Reserve does launch QE 4, the market may not continue rallying like it has over the past few days. The market patagonia guide pants on the floorlikely has significant expectations on just how big QE 4 will be. If the Fed does not meet those expectations, the market will likely retrace at least some of its gaipatagonia portland oregon new homes0ns. (More.)