Regional: The Big Picture - Another Bernanke Put

• The new unlimited MBS buying program from the Fed will support further risk-on trade in the coming week.
• The scale of the monetary injection is unprecedented as it is open ended till there is a substantial improvement in the US labour market.
• From what we have seen over the last 20 years, the Fed has only lifted the Fed funds rate when the unemployment rate falls to the 4-5% range. We are now at 8.1%.

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Source: Maybank Research - 14 Sep 2012