US QE May Continue Longer

US QE May Continue Longer.

Shortly before a policy meeting Federal Reserve officials announced they wanted more recovery in jobs before reducing its stimulus programme.

Wall street and markets did not react well after the last speech in which officials said they were thinking about phasing out the stimulus programme.

Markets have now grown after this news.

The Fed’s board also said that ultra-low interest rates should be kept until the end of 2015, but four members disagreed arguing that the benchmark rate could be raised this year or next.

Our View

Bernanke's comments about slowing down and stopping QE earlier sparked huge markets, we would not be surprised if US markets on a high tonight.  Pumping more money in the economy via QE means literally more money to go around, meaning prices and markets go up.