When the Federal Reserve last met, Bernanke made it clear that the central bank is not ready to make any rash decisions about monetary policy. Quantitative Easing is still on the table but only if the labor market continues to weaken and Europe's sovereign debt crisis worsens. However neither has happened over the past 2 weeks and in fact, there have been signs of stabilization.
At this point the central bank is focused on employment and Europe. For a third round of Quantitative Easing to happen, Europe would need to spiral out of control or the U.S. unemployment rate would need to rise back above 9%.
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