The Federal Reserve has decided to stand pat for now, not inaugurating QE3 or any other extreme market interventions.
Though the financial markets, with their bias toward action over inaction, do not seem to approve, the dollar should retain its relative strength with respect to gold and other currencies a bit longer.
And in truth, with banks sitting on nearly 1.5 trillion dollars of excess reserves and key money rates at or near zero, there is probably little else left for the Fed to do....except possibly bluff and pray...in the hope of affecting market expectations.
