11:50 EDT - One trick from Michael Feroli, chief US economist at JP
Morgan, is that if the minutes show "many" or "several" Fed policy
makers foreseeing more purchases, that would be a strong QE3 signal.
On the other hand, "a few" isn't quite as strong, but would still
leave the door open, while "a number" would simply indicate a return
to central banker opaqueness, he says in a report. Feroli's base case
is that Fed is open to two options: the potential purchase of
mortgages and changing statement language guidance, though he doesn't
see the conditions from last month's meeting bad enough to employ
them. Feroli says he's not sure about another option -- cutting
interest on bank reserves -- even as the buzz has risen following the
ECB's decision last week to cut the deposit rate to zero, a move
preceded the FOMC's June meeting. (min.zeng@dowjones.com)
(END) Dow Jones Newswires
July 11, 2012 11:51 ET (15:51 GMT)
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