Soft approach rather than QE3 in Jackson Hole on Friday - Bill Hubard (Barcelona) - Fed Chairman Ben Bernanke will probably not refer to the extension of the quantitative easing program during his speech in Jackson Hole, Wyoming this Friday. Instead he might propose other, softer monetary policy measures, such as “reshuffling the Fed's bond portfolio to hold more long-dated paper, like 10-year treasuries that are often used as a reference price for 30-year fixed mortgages”, according to Bill Hubard, Chief Economist at

The expert adds that: “The key for Bernanke on Friday, would be to articulate a plan that could bring on the refi wave without triggering an increase in commodity prices the way that QEII has been accused of doing. Taking a soft approach rather than aggressively promoting QEIII may disappoint some market participants on Friday, but in the long run it may do the most for risk appetite and for currencies closely associated with it.”