Will Uncle Ben change the speed of the printer?

According to pundits Ben Bernanke will not be changing the speed of the US$ printer when the FOMC mets tomorrow US time. This is expected to put some downward pressure on equity and precious metal markets as paper bugs will feel disappointed that Ben isn't throwing them more paper, well not yet anyway.

From WSJ.com

Original Source

By Steven Russolillo

Fed officials are prepared to hold the March policy meeting tomorrow. Don’t expect any fireworks, according to economists at Bank of America Merrill Lynch.

No major policy changes are expected in tomorrow’s FOMC statement, although discussions about the U.S. economy should offer clues on what the Fed is prepared to do next.

Plenty of attention has centered around whether the Fed has more tricks up its sleeve. ”Sterilized” bond buying is potentially an option, if the central bank chooses to step in again and boost the economy.

That said, nothing is likely to change until “Operation Twist comes to an end in June, BofA Merrill says.

“QE3 is not a guarantee, as we would expect the Fed to ease further only if growth drops below trend, inflation undershoots their target and possibly the equity market sells off,” says Michael Hanson, U.S. economist at BofA Merill.

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