All the fuss over the End of QE

by Laura Ehrenberg-Chesler on April 5, 2012

in Economic Indicators,Employment,Investment Strategies

A few days ago Federal Reserve Chairman Ben Bernanke implied that the domestic economy is doing well enough that it may be unnecessary to implement another round of Quantitative Easing.  This has caused the equity markets, which had a very strong first quarter, to take a breather.

We think the end of Quantitative Easing may be a good thing,  This decision by the Fed could be signaling a pick up in what has been a tepid economic recovery.  In addition, there is still plenty of liquidity in the system, and interest rates remain at historic lows.

With the labor market continuing to improve, the housing market stabilizing, and retail sales coming in better than expectation, the fuss over the potential end of QE will likely turn into a celebration.

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