RIP QE

October 29, 2014 0 Comments

The day we have been waiting (some more than others) has finally been realized. The Federal Reserve has ended its bond buying program, also known as Quantitative Easing (or QE), right on schedule.

*FED ENDS THIRD ROUND OF QUANTITATIVE EASING AS PLANNED
*FED SEES `SOLID JOB GAINS’ WITH LOWER UNEMPLOYMENT
*FED: UNDERUTILIZATION OF LABOR RESOURCES GRADUALLY DIMINISHING
*FED REPEATS RATES TO STAY LOW FOR `CONSIDERABLE TIME’
*FED REPEATS RISK OF BELOW-TARGET INFLATION DIMINISHED SOMEWHAT
*FED SAYS LOWER ENERGY PRICES TO HOLD DOWN INFLATION NEAR TERM
*KOCHERLAKOTA DISSENTS AT FOMC, SEEKING QE CONTINUATION

Considering that the program hasn’t done much to stimulate any meaningful economy growth that actually matters, one was wondering what took these central bankers so long or whether or not they were going to extend the program into a fourth round of bond buying. Despite the fact that this bond buying program hasn’t help really anyone and we’re all happy to see it end, I can’t find a single person who would be worried about this ending. Besides the people who own these particular stocks:

2014-10-19-TOS_CHARTSTo be honest, I don’t really think the Fed is going to completely end QE for long. It’s only a matter of time before the market tanks and that ‘data-dependent information that the Fed has been relying on gets tossed out of the window.

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