Markets are getting pretty volatile and many are expecting the Fed to step in. Of course, quantitative easing will do nothing but spike inflation so it's a lose.
QE3 Coming? After the recent market rout, more and more people speculate that the Fed may launch QE3. Given that the significant increase in risk aversion and money demand has undone some of the price inflation previously created by QE2 ...
Tim Duy, who is one of the better Fed watchers in the blogosphere, outlined the criteria for QE3 here. In Ben Bernanke's testimony to Congress on July 13, 2011, the following snippet from Bernanke's testimony got the markets all excited ...