Some dissent among Federal Reserve policymakers became evident in the latest minutes released from the FOMC meeting in late January. A few members expressed hawkish stances against additional quantitative easing -or QE3- while most supported more stimulus if economic conditions weaken.
Here's the key statement from the minutes:
"A few members observed that current and prospective economic conditions could warrant the initiation of additional securities purchases before long. Other members indicated that such policy action could become necessary if the economy lost momentum or if inflation seemed likely to remain below its mandate consistent rate of 2% over the medium term."
Despite some dissent, many on Wall Street are expecting the doves to rule the roost.
"I think it is sooner, rather than later," says Jason Trennert, chief investment strategist at Strategas Research Partners, about of the possibility of more easing. He says the seasonal effect of the U.S. economy that revolves around spring home sales presents the perfect incentive to implement such easing as early as March.
And this is just the start of Trennert's bullish stance on the market. Even though the S&P 500 hasn't seen a 1% decline for 33 straight trading days, while gaining over 8% along the way, he sees more money piling into this rally.Read More »from Market Rally Stalled, But QE3 Is Still Coming Says Trennert