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Kashkari: Bernanke ‘Leaning Forward’ on QE3

The question over a third round of easing from the Federal Reserve is a question of when, not if, PIMCO Managing Director Neel Kashkari told CNBC on Tuesday.

Kashkari said he expected Fed Chairman Ben Bernanke to send “more strong signals,” although it’s not clear whether it will happen in his upcoming Jackson Hole, Wyo., speech.

“If the Fed were to come out with an open-ended commitment, saying, ‘We will continue to ease monetary policy, continue to expand our balance sheet until we achieve some economic outcome — meaning nominal GDP growing, unemployment coming down — that would be very, very powerful,” Kashkari said on “Fast Money.” “At most, I would expect him to give more details on what such a program could look like. I doubt he’ll actually come out with the actual specifics this Friday.”

More easing is already being priced in, Kashkari added.

(Read More: Plan for ‘Disappointment’ From Bernanke: Analyst)

“I think that the equity markets have priced in assuming there will be some form of QE3, if he comes back and walks back away from that, I think you’re going to see risk markets react,” he said.

Trader disclosure: On Aug. 28, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders: Simon Baker is long AAPL; Simon Baker is long BAC; Simon Baker is long WFC; Simon Baker is long FB; Simon Baker is long SLW; Simon Baker is long TOL; Simon Baker is long P; Simon Baker is long YELP; Steve Weiss is short X; Steve Weiss is short AKS; Steve Weiss is short TCK; Steve Weiss is short JCP; Steve Weiss is short AAPL PUTS; Steve Weiss is short VALE; Steve Weiss is long QCOM; Steve Weiss is long MSFT; Steve Weiss is long HK; Steve Weiss is long BRCM; Steve Weiss is long WLP; Steve Grasso is long AET; Steve Grasso is long ASTM; Steve Grasso is long BA; Steve Grasso is long D; Steve Grasso is long F; Steve Grasso is long FRO; Steve Grasso is long LNG; Steve Grasso is long MHY; Steve Grasso is long MO; Steve Grasso is long NVIV; Steve Grasso is long PFE; Steve Grasso is long S; Steve Grasso is long XLU; Guy Adami is long C; Guy Adami is long GS; Guy Adami is long INTC; Guy Adami is long MSFT; Guy Adami is long AGU; Guy Adami is long NUE; Guy Adami is long BTU; Brian Stutland is long YUM; Brian Stutland is long XLE; Brian Stutland is long XLK; Brian Stutland is long XLB; Brian Stutland is long VZ; Brian Stutland is long VIX; Brian Stutland is long QCOM; Brian Stutland is long PFE; Brian Stutland is long MSFT; Brian Stutland is long BP; Brian Stutland is long AAPL JAN 2013 PUTS; Brian Stutland is long GE; Brian Stutland is long CVX; Brian Stutland is long LLY; Brian Stutland is long JPM.

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