QE 3 will not drive job growth. Yet, in the past few weeks, the markets are trading around session highs rallying around the Fed Chairman’s comments that more stimulus could be coming.  Tomorrow seems to be the day for QE3. 

In my opinion, the financial markets have already made their move.  And, the job market has made its move as well with the tepid report of 96,000 new jobs in August.

The fact is that QE 3 might put more capital in the markets, but it will not put more confidence in CEOs to hire.

The key indicators for CEOs to invest to hire will be more global market certainty, not just domestic market certainty.

Of course stabilization of the EU is front and center as well as certainty about the fiscal cliff in the U.S.  Clarity on these two issues will do more to boost jobs than the Fed can do at this point.

Until we get more market certainty, CEOs are on edge waiting to see if there is another Lehman Brother’s moment.  As a result, hiring is on hold.

In fact, in surveying hundreds of senior executives in September, fifty-seven (57) percent are either not hiring, or holding off hiring.  It underscores a “wait and see” tidal wave that no QE 3 can stop.

The third time for quantitative easing will have diminished returns for job growth.