Stocks, Precious Metals Spike On Report Fed Considering “Sterilized” QE
by Tyler Durden
Update: yup. It’s Jon “Mouthpiece” Hilsenrath all right. This is nothing but a test to gauge if the market will ramp on the clarification that future QE may be sterilized. If market ramps regardless, the sterilized clause will be ultimately eliminated. Full story link.
While we have yet to see the actual report, almost certainly emanating from Jon Hilsenrath, it appears that the QE3 rumormill has started, initially with speculation that the Fed’s activity will be merely “sterilized” or more Twist-type purchases, unclear however if in TSYs or also in MBS. Via the WSJ:
Fed Officials consider “sterilized” option for Future bond buying
Operation Twist Reprise, QE Other Options For Fed Bond
Still Unclear Whether Fed Will Launch Another Bond-Buy