March 13, 2012

COMMENT: While our regular experts have all pointed out that QE3 is de facto happening whatever they call it, the world was reassured only two weeks ago that something like QE3 wasn’t around the corner… and here they are saying it is all but imminent.

Michael Pento, president of Pento Portfolio Strategies, talks about the prospects for further quantitative easing by the Federal Reserve. He speaks with Alix Steel on Bloomberg Television’s “In the Loop” from the Bloomberg Link Precious Metals Conference in New York.

Expect A Quiet Fed Meeting, But $500B QE3 Is Around The Corner

March 13, 2012

While the Fed isn’t expected to announce any new policy action on Tuesday, the FOMC will probably hint at further easing which shouldn’t be too far away.

Labor markets remain depressed, despite a couple of months of solid jobs growth, and housing prices continue to tread lower. This should prompt the Bernanke Fed to deliver an “insurance ease” to keep the fragile recovery on track and hedge itself ahead of fiscal headwinds and external shocks, according to Nomura’s fixed income research team.

On the much commented issue of sterilized bond buying, Nomura’s analysts note it’s essentially an “academic issue.” Bernanke & Co. will probably favor sterilized QE, though, in order to appease inflation hawks and keep a lid on oil prices.

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Remember, it’s not a matter of IF you’ll need storable food, but WHEN!

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