FXstreet.com (Barcelona) - Commerzbank analysts question why didn’t the FOMC members act immediately and announce QE3 on 20 June, since the usual argument of not enough evidence of the slow labor market recovery isn’t convincing. “Rather, I believe that some central bankers are getting concerned about the “side-effects and risks”, which Bernanke mentioned explicitly yesterday”, wrote analyst Ulrich Leuchtmann, pointing to the structural problems on the US labor market that cannot be solved by monetary policy. “Once the FOMC realises this, it will give the clearest positive signal for the USD for a long time. After all, nonsensical US monetary policy measures would become less probable”, added Leuchtmann.
Forex Flash: FOMC policy can’t help labor market - Commerzbank
Wed, Jul 18 2012, 11:13 GMT | FXstreet.com
EUR/USD May 18 at 10:44 GMT
1.2838/40 (0.01%)
H1.2844 L 1.2836
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