QE2, here we come.
The FOMC decision to keep rates unchanged and accompanying confirmation in their statement of their willingness to ‘provide further accommodation if needed’, is indication that they recognize the negative outlook for the US economy. This indicates that they are preparing to undertake a second round of Quantitative Easing.
Weakness in the USD was pronounced against EUR, AUD and CHF. Gold also made a new high, while Silver is within a whisker of its March 2008 21.35 high.
The trend is your friend.
Category: Fed Policy, General Comment »