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Fed Seen Pumping Up Assets to $4 Trillion in New Buying

Posted By admin On December 11, 2012 @ 9:34 am In Money Watch | Comments Disabled

Joshua Zumbrun and Catarina Saraiva
Bloomberg [1]
Dec 11, 2012

The Federal Reserve will amplify record accommodation tomorrow by announcing $45 billion in monthly Treasury buying that will push its balance sheet almost to $4 trillion, according to a Bloomberg survey of economists.

Forty-eight of 49 economists predict the Federal Open Market Committee will purchase Treasuries to bolster an existing program to buy $40 billion in mortgage bonds each month. The panel pledged in October to continue that plan until the labor market improves “substantially.”

“It’s going to be massive and open-ended in size,” said Joseph LaVorgna, chief U.S. economist at Deutsche Bank Securities Inc. in New York and a former New York Fed economist.

Chairman Ben S. Bernanke and his FOMC colleagues will press on with purchases at least through the first quarter of 2014, according to the median estimate in the Dec. 7-10 survey. They are expanding the balance sheet beyond $2.86 trillion in a bid to spur growth and lower an unemployment rate of 7.7 percent.

Full article here [1]

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URLs in this post:

[1] Bloomberg: http://www.businessweek.com/news/2012-12-11/fed-seen-pumping-up-assets-to-4-trillion-in-new-buying

[2] Bernanke Seen Buying $1.14 Trillion in Assets in 2014: http://www.prisonplanet.com/bernanke-seen-buying-1-14-trillion-in-assets-in-2014.html

[3] “By the Time its New Steps Are Done, the Fed’s Balance Sheet Will Reach $4.5 Trillion, or About a Third of GDP”: http://www.prisonplanet.com/%e2%80%9cby-the-time-its-new-steps-are-done-the-fed%e2%80%99s-balance-sheet-will-reach-45-trillion-or-about-a-third-of-gdp%e2%80%9d.html

[4] BofA Sees Fed Assets Surpassing $5 Trillion By End Of 2014… Leading To $3350 Gold And $190 Crude: http://www.prisonplanet.com/bofa-sees-fed-assets-surpassing-5-trillion-by-end-of-2014-leading-to-3350-gold-and-190-crude.html

[5] Bloomberg Analyst: $700 Billion Bailout Could Balloon to $5 Trillion: http://www.prisonplanet.com/bloomberg-analyst-700-billion-bailout-could-balloon-to-5-trillion.html

[6] US Talks of Pumping $1 Trillion into Banks: Report: http://www.prisonplanet.com/us-talks-of-pumping-1-trillion-into-banks-report.html

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