Fed Chairman Ben Bernanke is going to speak
at 10 a.m. ET Friday at the St. Louis Fed’s
annual symposium in Wyoming.Everyone is hopeful for QE3 and Mr.Bernanke
has given this hope several times but big ? is he will give hope again (I
mean to say sing same song )or will do it ?There is a busy calendar of
economic news in the week ahead, but the Bernanke speech trumps all else. The
Fed beige book on the economy, second quarter GDP
revisions and consumer confidence are among the reports expected.
Quantitative easing
encourages investors to move into riskier assets and has helped support the
stock market. The Fed currently is conducting Operation Twist, a program under
which it buys longer-dated Treasury’s and sells an equal amount at the short
end. Unlike QE, twist does not expand the Fed’s balance sheet. What I
personally think that probably Fed will come up with small kind of
stimulus that will keep risk asset (stocks, metals etc.) strong till this year
end.After election expect huge
weakness in US Dollar.
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