We are all waiting to hear what the big man has to say in his news conference today. Will he end or continue the QE programs? Does he see inflation as a bigger threat? Does he have a magic pill that will make Americans spend like drunken sailors again?
Regardless of all the hoopla, it’s clear to me where he’s going…The end of the “official” QE2 with a twist. They will continue to use the proceeds of bond payments and redemptions to buy more bonds. Even though this is still a form of stimulus, it will show some fiscal restraint and responsibility. The markets will like this, and along with great corporate earnings, will go higher.