the Fed chief has decided to 'wait and watch' and has put QE3 on the backburner.

Will he announce QE3? Or won't he? This was the question foremost in the minds of most global investors before the US Fed  Ben Bernanke's testimony yesterday. For the time being, the Fed chief has decided to 'wait and watch' and has put QE3 on the backburner.  Especially since the Fed is of the view that the US economy was picking up at a 'moderate' pace. We are not sure if that is really the case. With massive debt and high unemployment, the sustainability of a recovery seems doubtful. However, we believe that introducing third round of quantitative easing is not really going to help matters either. The Fed introduced 2 rounds of quantitative easing (QE) after the financial crisis. While there was some sort of growth reported as a result of these measures, it proved to be more of a short term nature. Some basic and big issues continue to haunt the US. So a third round also would probably not have achieved much either other than signal the downfall of the dollar going forward.