Markets Spooked As The Chances For QE3 Grow Smaller

The markets have been extremely focused on the likelihood (or not) of a further quantitative easing being announced by the U.S. Fed. It may be noted that though the FOMC minutes for the meeting held on July 31 have clearly spelled out that a final decision regarding QE3 would be taken at the September meeting, markets have been vigorously analyzing emerging economic data to assess the chances of it materializing. As a result, there is considerable focus also on Chairman Ben Bernanke’s statement tomorrow at the central bankers’ meeting at Jackson Hole, for likely clues to the Fed’s thinking in…