I have two big points that I want to talk about — the recent excellent news we had on the jobs front, and the latest quantitative easing news from the Fed.

First off, the better-than-expected jobs numbers were a very welcome sight! Look at the details:

• ADP (NASDAQ:ADP) reports that private payroll growth rose 216,000 in February — the 25th straight month in a row of growth.
• The Labor Department reports that February payrolls rose 227,000, and December and January payrolls were revised higher by a very healthy 61,000.
• A broad household survey showed a 428,000 surge in February job growth, following January’s stunning 847,000 gain in the household survey. According to the household survey, job growth has surged 2.3 million in the past six months to a monthly average of 385,000, which represents the strongest job growth in 12 years!

So overall, while the rest of the world’s GDP growth might be in for some bumps, it appears that GDP growth will remain robust in the U.S. as solid job growth helps to boost consumer spending.

The second bullish note for the stock market is that companies continue to issue a record amount of bond debt at extraordinarily low interest rates, often for the primary purpose of refinancing existing debt and to buy back their outstanding shares.

Interestingly, The Wall Street Journal reported that the Fed is considering a new type of bond-buying program designed to dispel worries about inflation. Specifically, the WSJ reported that the Fed would print new money to buy long-term mortgages or Treasury bond — in essence, this is a third round of quantitative easing.

Frankly, in my opinion, the Fed is now up a creek without a paddle, since inflation is about to explode in the soon-to-be announced February inflation statistics, so it is clear that the Fed is scrambling to re-establish its credibility.