Today it was reported that QE will continue in the form of another QE Light program. This will be to support the fragile monetization program. It appears, due to the size of the program, that the goal this summer will be to support prices, and not increase them.
The new QE Light will monetize debt twice a week, and only twice a week, until QE 3 is announced. The amount is not substantial, but it will be enough to put a top on the dollar. M2 may contract slightly from where it is now, but it will not last long. The further this policy lasts, the more weight will be placed on the dollar.
The mainstream media did not think there was a hint at further easing, but they did not listen to the NYFed. The NYFed confirmed what we already know: there is only one form of monetary policy- monetize the debt, so to keep rates at zero. At this point, there is no other option and there is no going back. The Fed will continue to monetize the debt until it has no more credit to do so.