Real estate investing news: Wall Street is preparing for the end of the economic easing that the Federal Reserve Bank has called QE2. The Fed has said that it will end the current buying of Treasury securities as part of the $600 billion economic easing program at the end of June as originally scheduled.
Most economists do not believe that the Fed will immediately turn around and buy up more securities. They will watch what happens in the area of interest rates and whether unemployment figures continue to decline. With the end of QE2 it is expected that interest rates will rise moderately and unemployment figures will continue to show modest improvement. We can be sure that Ben Bernanke will continue to stay in the middle of the fray and will make further adjustments if economic indicators warrant further easing.
Many anticipate that the stock market will be weak as a result of the end of easing through the remainder of the summer, but that in the long run this will prove to be a strong year for stock market gains.
With neither Congress nor the President inclined to put a full measure of austerity into the Federal budget, we probably won?t see large budget cutbacks. This means that the economy will continue to just creep along and unemployment figures will decline very slowly as job markets begin to improve in an increasing number of cities. With unemployment staying elevated so long, people will continue to have trouble paying their mortgages or purchasing new homes, which, by keeping foreclosures high and prices low, will continue to prolong the housing crisis.
We may not ever have what is called QE3, but the Federal Reserve will never be far behind the numbers with an analysis of what it feels is needed in order to keep the economy limping along.
?Print This Post Source: http://www.rewealthcoach.com/2011/05/31/real-estate-investing-news-will-there-be-a-qe3/
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