I think it’s time to put QE3 talk on the back burner. Today’s Beige Book was a good indication that the Fed is feeling better about the economy.
QE3 is not going to happen in the first half of 2012 for sure. Beyond that, it would take a massive crisis to print more as the election approaches.
I believe the Fed’s focus will shift towards efforts to boost housing while could be USD-positive if done right.
The ECB on the other hand…