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Fed watchers have been waiting anxiously for weeks and months for the upcoming speech at the Kansas City Fed’s event at Jackson Hole, Wyoming.Two years ago, this was the event where Ben Bernanke hinted at QE2.
But economist David Rosenberg warns that we shouldn’t expect such hints for QE3 this time around.
From David Rosenberg’s latest note:
While he did use the Jackson Hole event as a venue to verbally hint at QE2 back in 2010, such was not priced in as QE3 seems to be today. It was a surprise. And traditionally, Jackson Hole deals with deep structural economic and financial issues as opposed to a near-term policy forum (that is why the FOMC meets every six weeks). Be braced for disappointment if you’re anticipating a 2010-like QE announcement. Not that it won’t come eventually, just not this close to the next payroll report (September 7th) and Fed meeting (September 12th). Not to mention the next really critical event for the world calendar, which is the ECB policy meeting on September 6th. Plus one has to wonder how Ben Bernanke feels about being the modern-day E.F. Hutton when every noun, verb and adjective he chooses can move the markets big-time…