tag:blogger.com,1999:blog-27504100411130097882023-06-20T05:21:25.657-07:00FBM KLCIFBM KLCI | Malaysia Share Market | Make Money With Share Market | Bursa Malaysia | KLSE | Warrant | Share Market | Make Profit In Share MarketUnknownnoreply@blogger.comBlogger3125tag:blogger.com,1999:blog-2750410041113009788.post-2006201394191131312012-05-21T17:09:00.001-07:002012-05-21T17:09:27.133-07:00QE3 will work under the right circumstances. But I don’t believe such circumstances prevail at this time<div class="separator" style="clear: both; text-align: center;">
<a href="http://4.bp.blogspot.com/-ml5zySZQ8Dk/T7rZEuQJhkI/AAAAAAAAGSA/gfXrSwr_5S0/s1600/bursa-trade-447x300.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="214" src="http://4.bp.blogspot.com/-ml5zySZQ8Dk/T7rZEuQJhkI/AAAAAAAAGSA/gfXrSwr_5S0/s320/bursa-trade-447x300.jpg" width="320" /></a></div>
“As popular as it might be in some quarters to rule out further LSAPs
(QE3, as it is known), I do not think this option can be taken off the
table. QE3 will work under the right circumstances. But I don’t believe
such circumstances prevail at this time.”<br />
<br />
The above commentary was from a speech this morning by Dennis
Lockhart – President of the Federal Reserve Bank of Atlanta – at the
Institute of Regulation & Risk in Tokyo, Japan. There, Lockhart
argued that although the U.S. economy is in a “phase…when sustained
monetary accommodation is warranted to keep the U.S. economic recovery
going,” the current environment does not warrant a third round of money
printing, at least not yet.<br />
<br />
Additional highlights from the Atlanta Fed President’s speech included:<br />
“Circumstances today in the United States call for continued measured
efforts to quicken the pace of recovery and shrink unemployment, while
keeping inflation controlled and close to the FOMC’s official target of 2
percent. Those efforts for the time being should fall in the realm of
communications. Current economic data continue to be a mix of positives
and negatives. Consumer activity is continuing to grow, and
manufacturing is expanding. At the same time, we’ve seen a recent
slowdown in business investment, and the pace of job creation has
weakened.”<br />
<br />
“There are larger-than-normal risks to my outlook, however. Chief
among them is the potential for broad spillover from Europe to the U.S.
and global economy resulting from financial system disruption as well as
further economic slowdown.”Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-2750410041113009788.post-70511088597767211422012-02-15T15:39:00.000-08:002012-02-15T15:39:23.850-08:00Fed Minutes Show FOMC Divided on QE3<div class="separator" style="clear: both; text-align: center;"><a href="http://4.bp.blogspot.com/-Exdp4MujG_4/TzxCDIKjlCI/AAAAAAAAF3Y/7sXqfT5Av5k/s1600/pic.dollarbillrolls.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="212" src="http://4.bp.blogspot.com/-Exdp4MujG_4/TzxCDIKjlCI/AAAAAAAAF3Y/7sXqfT5Av5k/s320/pic.dollarbillrolls.jpg" width="320" /></a></div>The latest Fed minutes showed a growing divide among hawkish and dovish members over the prospects for a third round of quantitative easing (QE3).<br />
One of the key sections of the Fed minutes – a recap of the most recent Federal Open Market Committee (FOMC) meeting – indicated that:<br />
<br />
<em>A few members observed that, in their judgment, current and prospective economic conditions–including elevated unemployment and inflation at or below the Committee’s objective–could warrant the initiation of additional securities purchases before long. Other members indicated that such policy action could become necessary if the economy lost momentum or if inflation seemed likely to remain below its mandate-consistent rate of 2 percent over the medium run. In contrast, one member judged that maintaining the current degree of policy accommodation beyond the near term would likely be inappropriate; that member anticipated that a preemptive tightening of monetary policy would be necessary before the end of 2014 to keep inflation close to 2 percent.</em>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-2750410041113009788.post-30315843944442936942012-01-03T16:15:00.000-08:002012-01-03T16:18:08.125-08:00Potential for a third round of quantitative easing (QE3) will continue to be a critical factor for the gold price heading into 2012<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://4.bp.blogspot.com/-g9vIBnt3p-w/TwOaZwx3eqI/AAAAAAAAFnk/Q-LUS5GMprY/s1600/congress.jpg"><img style="float: left; margin: 0pt 10px 10px 0pt; cursor: pointer; width: 400px; height: 282px;" src="http://4.bp.blogspot.com/-g9vIBnt3p-w/TwOaZwx3eqI/AAAAAAAAFnk/Q-LUS5GMprY/s400/congress.jpg" alt="" id="BLOGGER_PHOTO_ID_5693564121307904674" border="0" /></a>Looking ahead to the first trading week of the new year, a slew of U.S. economic reports are likely to serve as catalysts for the gold price. Later this morning, the ISM Index – a key manufacturing gauge – and a report on Construction Spending will be released. The latest Fed minutes – from last month’s Federal Open Market Committee (FOMC) meeting – are due out this afternoon. The remainder of the week includes several data points on the labor market – with ADP employment and weekly jobless claims scheduled for Thursday, followed by the monthly non-farm payrolls data on Friday. <p>The Federal Reserve will undoubtedly be keeping a close eye on the economic data as it prepares for its next FOMC meeting on January 25-26. The potential for a third round of quantitative easing (QE3) will continue to be a critical factor for the gold price heading into 2012. Thus far, the Ben Bernanke-led Fed has stressed the importance of maintaining accommodative monetary policies for the foreseeable future, but has yet to launch a new money printing campaign.</p> <p>While the calendar is considerably quieter in Europe this week, German Chancellor Angela Merkel and French President Nicolas Sarkozy announced yesterday that they will meet in Berlin on January 9 to discuss next steps in combating the sovereign debt crisis. Euro zone officials are then scheduled to meet on January 30 at the next European Summit to draft a stricter set of measures for reigning in government spending.</p> <p>Commenting on the outlook for the gold price, VTB Capital analyst Andrey Kryuchenkov wrote in a recent note to clients that “Longer-term players and physical buyers are likely to return to the market in the first half (of 2012), while the latest price retreat could serve as a good encouragement for hesitant market participants…There is little alternative to gold in times of economic uncertainty, despite the recent rush for the dollar. Gold stands on its own in terms of safe haven buying and bullion allocations are only likely to gain with currency protectionism still at large.”</p>Unknownnoreply@blogger.com0