That is the question. As June approaches, will the Fed end QE2 as promised? Or will it immediately begin with the next program, to be likely dubbed QE3 by pundits?
I think a lot depends on other factors in the world. The ECB wants to raise rates this month, just as the periphery countries, especially Greece, Portugal, and Ireland are becoming increasingly economically unstable. Debt deflation and rising unemployment is common there, which will likely translate into political repercussions.
The US housing market is far from stabilizing, and that's one of the purported reasons for QE, right? To stabilize the housing markets, keep interest rates low, and to push up asset values.
Oil too, is a major factor. It has recently made a new high since the 2008 oil price spike deflated. The Middle East situation is a major factor here, after all, an increasing price of oil is basically a tax that transfers money from industrial countries to the oil exporting countries. That's a huge drain of wealth.
Marc Faber makes some interesting points in this recent Bloomberg interview. Others have their say in the first few minutes regarding the possibility and timing of QE3: