Good article here. Attention continues to mount for Bernanke. The Chairman is finding himself in the cross-hairs of widespread disagreement among the FOMC members. The fact that he proceeded with an operation that 50% of members were against. is alarming.
In the end though, I remain of the view that QE3 will eventually come. November, December, or even next year remains the question.
After looking at some CPI data, it seems that levels are still quite high. Core-inflation is increasing and I’ve even had friends complain how rents have gone up in Miami. I understand that commodity prices (gas prices) have come down, but food prices have gone up. Coupled with increasing rents, the consumer remains weighed down by inflation.
On the basis of inflation, it may still be too soon to proceed with QE3. However, if we have a negative shock (Europe or China), the Fed would more than likely act.