okaycuckoo, on 29 March 2012 - 01:40 PM, said:
I do think QE will last for another 10+ years, but they have to take time to figure out the lasting effect on commodities and consumption.
My guess is the Fed will talk about it for the rest of year, then deliver the next round when Obama is elected again.
Maybe we'll have more QE, but not as you say until after Barry's 2nd coronation.
And maybe next time it won't be QE at all, but a more direct form of monetisation?
But job Number One for the Fed (and the BoE) is the bond market. Yields on the 10 yr are creeping up, in the US at least, which neither can afford. I think Benny and Mervo will pull the rug from under the fraudexes and chase a lot of institutional money back into fixed income by declaring *QE: Mission Accomplished* this Spring. Selling the QE maturities back to the banks and pension funds could help cement the deal.
It's putting lipstick on a pig, of course. But what other options do they have? More energy inflation at this point would be calamitous.