Tuesday, September 21, 2010

QE2 is Coming

QE as in quantitative easing. The "money" sentence from the FOMC statement:

The Committee will continue to monitor the economic outlook and financial developments and is prepared to provide additional accommodation if needed to support the economic recovery and to return inflation, over time, to levels consistent with its mandate.
Not a surprise that Treasuries (including TIPS) rallied along with gold and the Euro, but interesting that commodities (including oil), REITs, and financials sold off post-announcement. Perhaps a sign that QE is a sign of desperation and desperation isn't good a good sign for global demand.

Source: Yahoo