Fed up with promises

Discussion in 'Trading' started by trading1, Aug 9, 2011.

  1. How much does this promise from the Fed really mean?
    The market alreadly is pricing low rates long into the future, and is looking at ultra low rates now, so whats new other than a "promise" to keep this status quo.

    What's it going to say for their credibility if when they have to break that promise? Say, inflation picks up somehow, it's not impossible.

    It seems to suggest that they've written off hopes of recovery for the next couple of years.

    It's like they're using their last hopes and wheeling out promises.

    I guess it provides for some Long term planning? Is it there something substantial to the news, why the rally on the basis of it, or is it premised on the expectation of a QE3?