Q3 is out of the question. Yesterday the Fed opted for a more prudent, moderate stimulus that will not weigh down their balance sheets as much, because the only way to inject new money is to recycle old money.
Let us call this "Operation Twist," a positive move in that it relaxes financial anxiety by stretching out the length of time that the central bank's stimulus portfolio can be utilized; its volume should remain the same. The Fed will also buy mortgage debt, which could bring it some sort of yields.
For the first time in more than two years, the Federal Reserve said goodbye to quantitative easing delusions, which shows they finally realize that the previous stimuli did not work. Bernanke's decision indicates a more realistic policy, but it could also be interpreted as a symptom that the United States economy is not as bad off as we thought.
