- History suggests odds of recession increases if growth cannot stay above 2%
- 2-year low-rate promise based on market conditions, could change
- Fed could increase balance sheet or change its composition if conditions deteriorate
- Growth a bigger problem than inflation
- Wild equity gyrations dampens consumer psychology
- No renewal of bank solvency concerns in US
QE3 is still in drydock but could be commissioned if needed is the takeaway from the moderately hawkish Lockhart…