The WSJ’s Jon Hilsenrath, the best-sourced Fed reporter there is, says this…
The outcome of next week’s Fed board meeting isn’t in doubt. It is likely to decide to allow a $600 billion program to buy Treasury bonds to run its course, as planned, in June. The debate will shift to how and when to begin raising interest rates to stem the risk of inflation.
We guess there’s a little wiggle room with the word “likely” but basically it’s certain that we’ll get some signal that the end of cheap money is over.
As Hilsenrath also notes, the meeting will also mark Bernanke’s first public press conference, which should be fun.
What’s interesting: Despite repeated signals that QE would end, the dollar is still getting drubbed. Somewhere, someone smells a rat.
Anyway, investors have been obsessed with the QE question: What happens to rates, stocks, and the economy?