More stimulus could be coming
Posted July 13, 2011
The QE3 discussion is officially back on the table thanks to Mr. Bernanke and his testimony in Washington on Wednesday. While nothing has been confirmed or any details offered as to specifics, the markets took his rhetoric to heart – the Dow jumped over one hundred points and we saw a slight improvement in Treasury Yields Wednesday afternoon.
The disappointing unemployment number from last week also gave us some Treasury ammunition, pushing yields last Friday to below three percent again, likely one of the reasons that the Fed is even considering another potential round of stimulus sooner than later.