April 27, 2011, 11:18 a.m. EDT
Will the Fed let QE2 end as planned?
Commentary: Blogging Bernanke’s press conference
By Rex Nutting, MarketWatch
The big question at Wednesday’s press conference with Bernanke is what the Fed is going to do next. The Fed has been buying up $600 billion worth of government bonds in an effort to lower long-term interest rates and stimulate investors’ appetites for riskier investments. Critics say the program is simply fueling speculation in commodities and stocks, and is eroding the value of the dollar.
The $600 billion program — known colloquially as quantitative easing or QE2 — is scheduled to end in June. Will the Fed let the program end as planned, or extend it? When will the Fed begin to shrink its $2.7 trillion balance sheet?
Ahead of the FOMC meeting today, most outside observers expected the Fed to let the program end as planned, and leave the door slightly ajar for further bond purchases if the economy worsens significantly.
Gold is $1,581/oz today. When it hits $2,000, it will be up 26.5%. Let's see how long that takes. - De 3/11/2013 - ANSWER: 7 Years, 5 Months
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