If the junkie can't get high off his normal fix, he must increase the fix. QE3 DID NOT move the markets up before the election, I can't say that is what it was designed to do, but is sure as heck wasn't to increase employment. This kind of wreaks of an "October Surprise" in politics. In any case...
Market Watch released the following read the last sentence
There are no pressures on the Fed for immediate action on these two fronts, economists said.
“I think they are reasonably comfortable with the market reaction [to QE3] and the way the economy has turned out,” said Michael Hanson, an economist with Bank of America Merrill Lynch.
Robert DiClemente, chief U.S. economist at Citigroup, noted that, in the wake of QE3, Citi’s financial-conditions index has reached its most accommodative reading since the Fed began easing more than five years ago. “At its current reading, the financial-conditions index is consistent with above-trend growth in final demand, an important prerequisite for stronger hiring and meeting policy goals,” DiClemente wrote in a note.
At the moment, the Fed is buying $45 billion of long-term Treasurys each month under its Operation Twist program, with the purchases offset by sales of shorter-term securities. Many economists think the Fed will decide to expand QE3 by that amount, and with Treasurys instead of MBS. But the announcement is not expected to come until its December meeting.
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