Good Morning. We have a little bit of economic data being released today as we head into the famed “Jackson Hole” speech by Chairman Bernanke. Unfortunately, his use of the 2010 conference to announce a change to monetary policy with the launch of QE2 has created quite a stir around what normally was a more academic event.
With equity markets at multi-year highs, economic data “improving” since the latest FOMC and inflation expectations firmly “anchored” at 2% the Fed is likely to announce nothing on Friday nor in September. As long as they have the ability to talk up equity prices without expanding the balance sheet one additional fiat dollar why should they?