Submitted by Mark Hanna
Courtesy of MarketMontage. View original post here.
It appears “many” folks in the Fed room are looking to additional easing based on the just released FOMC minutes. The market has cut its losses significantly as the normal Pavlovian response happens (NASDAQ turned positive). Same old, same old. Usually it takes 30-45 minutes to shake out to see what the actual response is. Clearly QE3 is getting “baked in” as are ECB actions. If the central banks do not follow through it risks making the market “angry” at this point.
A number of them indicated that additional accommodation could help foster a more rapid improvement in labor market conditions in an environment in which price pressures were likely to be subdued. Many members judged that additional monetary accommodation would likely be warranted fairly soon unless incoming information pointed to a substantial and sustainable strengthening in the pace of the economic recovery.
Disclosure Notice
Any securities mentioned on this page are not held by the author in his personal portfolio. Securities mentioned may or may not be held by the author in the mutual fund he manages, the Paladin Long Short Fund (PALFX). For a list of the aforementioned fund’s holdings at the end of the prior quarter, visit the Paladin Funds website at http://www.paladinfunds.com/holdings/blog
