QE3 comes after Communications revamp

The FT’s Harding writes that QE3 is going to have to await a broader communications revamp. Bernanke apparently has them looking at a firmer statement of their goals and a forward track for the overnight policy rate (something the Riksbank and RBNZ provide).

I am certainly not ruling out QE3 at the Dec 13 meeting. It is possible that this European mess is concentrating minds, and that we will see both a communications revamp and QE3 in Dec. More likely, perhaps, is the revamp in Dec – as the forward guidance might be expected to depress yields – and more QE in Q1’12 as Europe bursts.