Pioneer Investments:

From Our Blog
Fund Commentaries
Classic Concepts
Home Insights From Our Blog Printable Version

About This Content - The views expressed here regarding market and economic trends are those of Investment Professionals, and are subject to change at any time. These views should not be relied upon as investment advice, as securities recommendations, or as an indication of trading intent on behalf of Pioneer. There is no guarantee that these trends will continue.

This material is not intended to replace the advice of a qualified attorney, tax advisor, investment professional or insurance agent. Before making any financial commitment regarding any issue discussed here, consult with the appropriate professional advisor.
Back To List
Was QE3 Necessary? It Depends on Who You Ask ….

Ken Taubes
calender-icon Posted on September 17, 2012

Last week Chairman Bernanke and the Fed launched another aggressive stimulus program, QE3, saying that they will buy $40 billion in mortgage debt per month and continue to purchase assets in order to boost growth and reduce unemployment. He also announced that the Fed is not likely to raise rates from the current rock bottom lows until at least mid 2015, vs. 2014 as previously stated.

I’ll make a couple of observations about the justifications the Fed offered for its action:

  • One is that the Fed’s belief that the economy cannot improve fast enough without their help – a point which I think will be highly debated. U.S. economic weakness has been due principally to a slowdown in manufacturing, largely attributable to the weakness in Asia and Europe. What’s interesting is that housing has gained momentum despite the Fed’s news. Autos and consumer spending have both held up and improved over the last several months.
  • The other is that the Fed reiterated its belief that inflation will not move higher than 2% between now and 2015, giving them scope to do some more easing.

Market Reactions were Mixed


Check the background of this firm on FINRA's BrokerCheck.

Before investing, consider the product's investment objectives, risks, charges and expenses. Contact your advisor or Pioneer Investments for a prospectus or summary prospectus containing this information. Read it carefully. To obtain a free prospectus or summary prospectus and for information on any Pioneer fund, please download it here.

U.S. Home | Global Home | Site Map | Careers | Privacy and Security | Legal | Business Continuity
Securities offered through Pioneer Funds Distributor, Inc., 60 State Street, Boston, MA. 02109. Underwriter of Pioneer mutual funds, Member SIPC © 2016 Pioneer Investments.