Well Ben Bernanke pulled the trigger. Quantitative easing round three. Forty billions of mortgage bond purchases a month. Whether it's the right or wrong decisions, only time can tell. Greenspan had his hand on the trigger for quite a long time but Helicopter Ben has the worst financial situation to deal with since the 1930s, so perhaps he may be cautious to not repeat the mistakes during the Great Depression that prolonged the situation. But one can also question his timing. Republicans hate him - that's pretty much a known fact. It's pretty much a fact that Paul Ryan would blow up the entire Fed if he was constitutionally able to plan some explosives at the next Fed meeting. So any possibility of Mitt Romney becoming President of the United States would almost certainly mean the end of the Bernanke's reign as the Fed top dog. With the election coming in less than two months and markets in limbo, it seemed almost perfect to pull the switch. And did it work? Will it help Obama get elected for a second term?
It seemed that Obama had momentum coming from the Democratic Convention and renewed attacks on Romney's tax and business record was helping in polls but the move seemed to lock the polls in Obama's favor especially in swing states such as Ohio and Florida which winning anyone of them would almost certainly mean victory for the current President. The market is moving into new highs which would technically help the current momentum and certain clear out the shorts for a while and perhaps just long enough voters to march over to the polls to give Obama the vote of confidence. So it can be game over for Romney who is not only falling behind in the polls but funding raising would also take a big hit as donors don't want to waste money on someone who is going to lose. Bernanke can always say that Congress's lack of action was endangering the already fragile economy and the unemployment numbers didn't look good so it would hypothetically be better safe than sorry. Regardless of the rationale, if Obama gets a clear victory, its a well play move by Bernanke. Well played.