Stocks Get a QE3 Jolt
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Coming off another volatile week, investors are starting this week in a better mood.
This is likely in anticipation of the Federal Reserve's Jackson Hole meeting which could bring with it QE3. In addition, the Libyan rebels takeover of Tripoli provides hope that oil prices could head lower once production is resumed.
Stock futures are higher across the board in early action: Dow futures are up 142, Nasdaq 100 up 36.25 and S&P 500 up 17.
On Friday, August 26th at 10AM, Federal Reserve Chairman Ben Bernanke will deliver a speech at the Federal Reserve Bank of Kansas City Economic Symposium, Jackson Hole, Wyoming. Many expect Bernanke will give the market what it wants - more stimulus.
In its recent FOMC statement, the Fed acknowledged the economic recovery is much slower than expected and inflation is under control. This assessment could give Bernanke & Co. the leeway needed to announce additional monetary stimulus. While the Fed vowed to keep rates "exceptionally low" through at least mid-2013, there were an unprecedented three dissenters who voted against the action.
Additional easing could come in the form of another bond buying program, rate caps, a price level or nominal GDP target, or interventions in non-government securities markets.
This is likely in anticipation of the Federal Reserve's Jackson Hole meeting which could bring with it QE3. In addition, the Libyan rebels takeover of Tripoli provides hope that oil prices could head lower once production is resumed.
Stock futures are higher across the board in early action: Dow futures are up 142, Nasdaq 100 up 36.25 and S&P 500 up 17.
On Friday, August 26th at 10AM, Federal Reserve Chairman Ben Bernanke will deliver a speech at the Federal Reserve Bank of Kansas City Economic Symposium, Jackson Hole, Wyoming. Many expect Bernanke will give the market what it wants - more stimulus.
In its recent FOMC statement, the Fed acknowledged the economic recovery is much slower than expected and inflation is under control. This assessment could give Bernanke & Co. the leeway needed to announce additional monetary stimulus. While the Fed vowed to keep rates "exceptionally low" through at least mid-2013, there were an unprecedented three dissenters who voted against the action.
Additional easing could come in the form of another bond buying program, rate caps, a price level or nominal GDP target, or interventions in non-government securities markets.
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