By Dian L. Chu, EconMatters
Federal Reserve Bank of St. Louis President James Bullard, when speaking to reporters in France on March 26, stated,
“If the economy is as strong as I think it is, then I think it may be reasonable to send a signal to markets that we’re going to start withdrawing our stimulus, and I’d start by pulling up a little bit short on the QE2 program… We can’t be as accommodative as we are today for too long, we’ll create a lot of inflation if we do that.”
So, it seems that QE2 will get a serious review during the Federal Reserve`s April meeting, and could be cut short by two months in order to send financial markets the message that they will not allow inflation to get out of control (See chart below comparing the Dollar Index to Crude, Silver, and Copper post Bernanke's Jackson Hole Speech on Aug. 28 2010).
Read More: http://www.econmatters.com/2011/03/blood-in-streets-as-qe2-could-end-in.html
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