Good jobs report means Fed should sit tight

 http://money.cnn.com/2012/03/09/markets/thebuzz/index.htm?iid=SF_E_LN

According to this article, more than 200,000 jobs have been added to payrolls for the third straight month. Although the unemployment rate remained 8.3%, it is much lower from the 9% at a year ago. Moreover, the so-called underemployment rate has dropped from 16% in October to 14.9% last month. This strong February jobs report indicates that the economy is steadily improved. Some economists/professionals pointed out that this could be a signal showing that there is no need for more QE, quantitative easing.(Since the finance crisis of 2008, the Fed has bought about $1.6 trillion in Treasury bonds in order to keep long-term rates low.) Alternatively, the Fed could buy more long-term bonds and then borrow the money back from investors; it could limit criticism saying that the Fed is fueling inflation by printing more money. On the other hand, some other economists/professionals held a more cautious attitude. Michael Materasso, senior vice president and co-chair of the fixed income policy committee at Franklin Templeton in New York, concluded that jobs gains are encouraging and the Fed should acknowledge that, but the Fed (might) still want to do QE3 as a concern of the still weak housing market.