May not even need to do an actual QE for a while For now, only the expectation of a QE is enough to rally the markets Just like a crack addict gets all excited when he thinks he's about to shoot up
Fed didn't confirm QE3 is on its way, it said it is possible if economy start falling, big different. Market is driven by Chinese rate cut, people were front running this news since last week. And Chinese will start providing liquidity for middle Asia, possible out US treasury next years, when if they would starting price oil in Chinese yuan. The gasoline price didn't reflect current oil price drop, one reason is taxes on all fuels. this market is so manipulated.