While talk circulated Tuesday morning about a possible QE3 announcement, some economists said the move is unlikely.
According to James Rickards, senior managing director of Tangent Capital, the only thing onlookers can expect from the Fed on Tuesday is more of the status quo.
In an interview with The Daily Caller, Rickards said, while he would not rule it out in the months ahead, the Fed would not announce a QE3 Tuesday, citing three main reasons.
For starters, said Rickards, “The Fed lacks credibility because QE2 failed.” There is also a big central bank meeting scheduled for October in Jackson Hole, Wyoming, and the Fed will likely hold off on debate of a third round of quantitative easing until then. And finally, there’s Europe.