Courtesy of Doug Short.
Note: At 2:15 PM today the FOMC Meeting Announcement will be released. There will no press briefing after this meeting. No change is expected in the Federal Funds Rate, but the FOMC statement will probably be updated to reflect the recent weakness in the economy. Will it also contain language that hints at another round of quantitative easing?
If a picture is worth a thousand words, this chart needs little additional explanation — except perhaps for those who are puzzled by the Jackson Hole callout. The reference is to Chairman Bernanke’s speech at the Fed’s 2010 annual symposium in Jackson Hole, Wyoming. Bernanke strongly hinted about the forthcoming Federal Reserve intervention that was subsequently initiated in November, namely, the second round of quantitative easing, aka QE2. The NY Times captured the essence of the speech here.
Will there be a round three? Do children like Disneyland?
