Financial markets are bracing for the conclusion at the end of June of the U.S. Federal Reserve's cheap-money policy of quantitative easing. Dubbed QE2 by investors, since this is the U.S. central bank's second round of asset purchases aimed at spurring the economy, the policy has been credited with boosting stocks and blamed for sky-high commodities prices and a weak dollar.
The Fed has been making regular purchases of U.S. Treasury debt, aimed at reaching $600 billion by the end of the second quarter as part of this policy.
For a selection of stories on the Fed and its QE2 policy, click on the codes inside the brackets .................. LATEST NEWS ON QE2: > 17Jun Mexico's Carstens: US monetary policy mgmt is good [ID:nT9E7H200V] > 10Jun Fed prepares for last spurt of easy money flood [ID:nN10189323] > 09Jun Sunset for Fed's QE2 expected by most [ID:nN08262275] > 08Jun Credit Suisse: end of QE2 bearish for stocks [ID:nN08238462] > 07Jun Bernanke glum on growth but gives no stimulus hints [ID:nN07142566] > 07Jun US Fed to start small reverse repos Wed-NY Fed [ID:nN07132531] > 07Jun Fed's Fisher: lots of liquidity in U.S. economy [ID:nN07115730] > 06Jun Fed officials say economic data disappointing [ID:nN06299146] > 06Jun Fed's Rosengren says too early for QE3-CNBC [ID:nN06292489] > 06Jun Fed's Plosser: Hard to tell on impact of "QE2" [ID:nLDE7550CF] > 03Jun Fed's QE2 end threatens U.S. inflation bond rally [ID:nN06284828] AND A POSSIBLE QE3: > 16Jun Safest bet: low rates for long time, not QE3 [ID:nN16236325] > 09Jun Fed's Lockhart: QE3 unlikely despite weaker growth [ID:nEBE7DA01K] > 08Jun Pimco's Gross says there will be no QE3 [ID:nN08279677] > 08Jun Chill out on QE3 but beware debt default [ID:nN08227017] > 08Jun US slowdown likely temporary, QE3 not on cards [ID:nT9E7GG02L] > 07Jun Fed's Evans less rosy, but not warm to QE3--WSJ [ID:nN07123606] > 07Jun Reuters Column - You're on your own, kids [ID:nN06283266] FED'S BALANCE SHEET > 16Jun U.S. Fed balance sheet hits another record size [ID:nN16223297] > 16Jun TABLE-U.S. M-2 money supply up $12.6 bln May 30 week[ID:nN16229525] > 16Jun Foreign central banks' US debt holdings rise - Fed [ID:nN9E7GO01K] > 16Jun Holdings of agency MBS's $914.51 bln June 15 [ID:nN9E7GO01L] > 16Jun No swaps with foreign central banks latest week-Fed [ID:nN16201446] > Federal Reserve buys $4.84 bln Treasuries [ID:nTAR001204] > Fed's burgeoning balance sheet: link.reuters.com/buf92k QE2 MICROSITE Click here to the QE2 Microsite to see QE2 in a series of graphs
r.reuters.com/meb39r INTERVIEWS: > 17Jun Goldman's O'Neill: buying chance in Russia, China [ID:nWEA6566] > 09Jun Fed's Lockhart: QE3 unlikely despite weaker growth [ID:nEBE7DA01K] > 08Jun IMF: US slowdown likely temporary, QE3 not on cards [ID:nT9E7GG02L] > 26May INTERVIEW-IMF sees few risks from end of Fed's QE2 [ID:nN26236174] ANALYSIS: > 16Jun Corp savings glut offers buffer in post-QE2 world [ID:nLDE75F18M] > 02Jun Bond market rally may signal dark times to come [ID:nN01213865] > 18May Fed's QE2: Miracle cure or moral hazard? [ID:nN11193148] > 13May A storm gathers over equities markets [ID:nN12115968] > 12May Array of exit options complicates Fed path [ID:nN29239195] COMMENTARY: > Rising U.S. prices mean Fed should move [ID:nN15282859] > Fed gets a taste of painful exit strategies [ID:nN13114095] > Stern Advice: Prepping your portfolio for the end of QE2 [ID:nN01173506] > Will QE2 end in fire or ice? [ID:nN25166355] > Markets face up to QE2 exit and euro zone impasse [ID:nLDE74MO1R] > QE2 end may be more a fizzle than a bang [ID:nN18200491] > Unwinding of speculative risk may fuel dlr revival [ID:nLDE74F1KM] > Buying dollar dips may be prudent [ID:nLDE74G0E6] > Dollar rebound will hit bubbly markets hard [ID:nLDE7420PW] FACTBOX: > What more can the Fed do to boost growth? [ID:nN16193127] > End of Fed's QE2 to hurt stocks, bonds - POLL [ID:nLDE74I0R4] REUTERS INSIDER on QE2 > QE2 demise calls for liquid strategy link.reuters.com/caf22s > End of QE2 may hurt high yld, emerging mkt dbtlink.reuters.com/qev99r > QE2's end a good thing -Schwab strategist link.reuters.com/baq99r > QE2's end may be stoking inflation - Rombach link.reuters.com/cud99r > Jim Rogers: Government bonds the next bubble link.reuters.com/qeh89r > Asset prices to fall on QE2 end - Poll link.reuters.com/kaj69r > The end of QE2: implications for bonds,stocks link.reuters.com/jaj69r > QE2 end will send long-bond ylds down Rombach link.reuters.com/wew59r > Fed's Lacker: Let QE2 run its course link.reuters.com/fuw59r > Jim Rogers Likely to Short Treasuries r.reuters.com/kew59r > Commodity Credit Vulnerable to QE2's End link.reuters.com/mew59r > Pimco Makes Gross Miscalculation-Rombach link.reuters.com/new59r > Playing QE's End With Yields on the Rise link.reuters.com/qew59r ........... AND THE POSSIBILITY OF QE3 > Fed's Plosser- hurdle to justify QE3 is hign link.reuters.com/zeq99r > IMF's Lipsky says no need for QE3 link.reuters.com/ruj99r > Food price fears to forestall QE3 link.reuters.com/gex89r .................. MORE NEWS: Federal Reserve Bank [FED] U.S. Governt Debt [DBT] Sovereign Debt [GVD] Money Markets [MMT] Foreign Exchange [FRX] U.S. stocks [STX] Breakingviews [BRV] Reuters Insider [RITV] .................. Page Editor: Ted d'Afflisio, Americas Economics & Markets Desk, +1 646 223 6300 ..................