Stocks Slightly Lower Ahead of QE2 Announcement
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Stocks are slightly lower ahead of the QE2 announcement from Ben Bernanke and the Federal Reserve at 2:15PM ET.
Going into the noon hour, the Dow is down 15 points to 11,173, the Nasdaq is down 9 and the S&P 500 is down 3.
It is widely-anticipated that the Fed will announce the resumption of its bond buying program with a focus on buying longer-term Treasury securities. The program could target gradual buying of a few hundred billion over the course of several months. The size of the program is anticipated to total between $500 billion to $1 trillion.
Another tool at the Fed's disposal is reducing the interest paid on excess reserves.
The Fed has made it clear that inflation expectations are too low and it will target a higher rate of inflation, more in-line with the norm.
Leading up to the QE2 announcement, stocks, gold and other assets classes have rallied. Today, Gold is lower as traders anticipate a "sell the news" reaction. Gold is down $22.60 today to $1336.30.
Going into the noon hour, the Dow is down 15 points to 11,173, the Nasdaq is down 9 and the S&P 500 is down 3.
It is widely-anticipated that the Fed will announce the resumption of its bond buying program with a focus on buying longer-term Treasury securities. The program could target gradual buying of a few hundred billion over the course of several months. The size of the program is anticipated to total between $500 billion to $1 trillion.
Another tool at the Fed's disposal is reducing the interest paid on excess reserves.
The Fed has made it clear that inflation expectations are too low and it will target a higher rate of inflation, more in-line with the norm.
Leading up to the QE2 announcement, stocks, gold and other assets classes have rallied. Today, Gold is lower as traders anticipate a "sell the news" reaction. Gold is down $22.60 today to $1336.30.
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