Fed Is on Path to End QE, but Stay on Course: Joy

David Joy, the chief market strategist at Ameriprise Financial, discusses the end of the Fed's QE program and its implications for the market. He highlights concerns about global economic growth, particularly in Europe, and the impact on the US economy. The discussion also covers the recent stress tests conducted by the ECB, their credibility, and the potential economic implications. Finally, expectations for the upcoming Fed meeting are addressed, focusing on potential changes in language and policy direction.

What is the Federal Reserve's stance after ending the QE program?

• They will stop monitoring inflation.

• They will tighten monetary policy immediately.

• They will increase interest rates significantly.

• They will maintain an accommodative stance.

What is a major concern regarding global economic growth?

• The rapid growth in Asia.

• The strong economic performance in Europe.

• The weak economic conditions overseas affecting the US.

• The high inflation rates globally.

What is the impact of the European stress tests according to the transcript?

• They lead to a decrease in transparency.

• They immediately boost lending activities.

• They remove a potential hurdle but don't jumpstart growth.

• They solve all growth issues in Europe.

How does the ECB ensure the credibility of the stress tests?

• By keeping the data confidential.

• By publishing thousands of data points for transparency.

• By only testing a few banks.

• By not involving any external auditors.

What change is expected in the Fed's upcoming statement?

• A complete overhaul of their policies.

• A re-emphasis on their accommodative posture.

• A focus on reducing inflation immediately.

• An increase in the QE program.