Dollar Lays Anchor As QE3 Speculation Takes Over - TheStreet

Dollar Lays Anchor As QE3 Speculation Takes Over - TheStreet: Will Fed Chairman Bernanke use this forum to announce QE3 or not? That will be the question that keeps the dollar and underlying risk appetite frozen. Though, in the meantime, any headline that is remotely related to this upcoming event (or that can be interpreted as having some form of connection) can still generate a considerable level of volatility. Monday, St. Louis Fed President James Bullard was messing with the scales when he pulled back slightly from his hawkish bearing by saying he could back the FOMC to take action should growth weakened “substantially” and inflation began to turn to “deflation”. That said, he noted that he still expects stronger growth through the second half of 2011.