Bernanke is going to give his press conference at 2:15, where he clarifies the Fed’s thinking behind its new decision to do “Unlimited QE”.
As the Fed said in its decision, it will buy unlimited bonds until…
The Committee will closely monitor incoming information on economic and financial developments in coming months. If the outlook for the labour market does not improve substantially, the Committee will continue its purchases of agency mortgage-backed securities, undertake additional asset purchases, and employ its other policy tools as appropriate until such improvement is achieved in a context of price stability. In determining the size, pace, and composition of its asset purchases, the Committee will, as always, take appropriate account of the likely efficacy and costs of such purchases.
The question is: What does “improve substantially” mean?
What are the specific markets the Fed will use to ease the program?
As NYT reported Binyamin Applebaum tweeted, this question will probably be the first, second, and third question that Bernanke is asked.
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