Updated from 5:55 p.m. ET to include after-hours action.
NEW YORK ( TheStreet) -- Another round of quantitative easing from the Federal Reserve may not be off the table completely but the second-quarter timeframe that many market watchers were predicting at the start of the year doesn't seem realistic anymore.
Paul Ashworth, an analyst at Capital Economics, broke down the situation in commentary on Wednesday, saying the economic data just isn't supportive of the central bank signing up for more bond buying when Operation Twist conks out at the end of June.
"We wouldn't rule out a third round of asset purchases at some point, possibly focused on mortgage-backed securities, but an announcement at one of the next few FOMC meetings now looks quite unlikely," he wrote. "More quantitative easing is a harder sell when inflation remains above the Fed's 2% target and the unemployment rate continues to decline at a faster pace than the FOMC
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV