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Bernanke acknowledges slowdown, but no QE3 hint

Fed Chairman Ben Bernanke acknowledged in his congressional testimony today that the incoming economic data had been "generally disappointing", but offerred no hint that the FOMC was close to launching a third round of large-scale asset purchases. Nevertheless, given the extent of the deterioration in the incoming data, we suspect the odds of QE3 being launched in the second half of this year are now roughly 50-50. 

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