WSJ Hilsenrath: don’t expect Fed to rush through QE3 door on Friday

Wall Street Journal reporter Jon Hilsenrath is said to be the Fed’s mouth on Wall Street, so it is with interest that we read his latest article this morning: For Bernanke, no summer fun at Jackson Hole. He asserts the Bernak is likely to use the Jackson Hole speech to explain his extended low rates to 2013 policy, and outline other “stimulant” doors still open to the Fed for the future as the economy weakens, but for this meeting at least, that is about all we should expect:

“The nagging worry that inflation might take root, despite the weak economy, is one reason why Mr. Bernanke and his colleagues might choose a cautious path in the months ahead.

At Jackson Hole last August, Mr. Bernanke heralded a second round of bond-buying aimed at propelling the economy known as quantitative easing, or QE2. The Fed’s recent declaration that it’s prepared to take other measures to promote the recovery clearly opened the door to QE3. But don’t expect the Fed chairman to rush through that door on Friday.”

We shall see…