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Fed Will Ease Monetary Policy This Week: Goldman

Posted By admin On June 19, 2012 @ 2:28 am In Money Watch | Comments Disabled

Jean Chua
CNBC.com [1]
June 19, 2012

The U.S. central bank will most likely ease monetary policy when it meets this week as recent data point to a worsening labor market and the crisis in Europe intensifies, Goldman Sachs said.

The Federal Open Market Committee will likely say it would buy assets such as mortgage-backed securities and U.S. Treasurys when it meets for a two-day meeting starting Tuesday, Jan Hatzius, the investment bank’s Chief U.S. Economist said in a report on Monday.

“We would be quite surprised if we saw no easing this week,” Hatzius wrote in the report.

The Federal Reserve may also extend Operation Twist, he added, although he does not find the “strategy very attractive.” The program – which involves the Fed selling medium-term bonds and using the proceeds to buy longer-term ones, such as 10-year Treasurys, effectively driving down longer-term interest rates – runs out at the end of June.

Full article here [1]


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URLs in this post:

[1] CNBC.com: http://www.cnbc.com/id/47868321

[2] GOLDMAN: QE3 Coming Next Week: http://www.prisonplanet.com/120630.html

[3] “Can Monetary Policy Really Create Jobs?”: http://www.prisonplanet.com/%e2%80%9ccan-monetary-policy-really-create-jobs%e2%80%9d.html

[4] China state paper lashes US monetary policy: http://www.prisonplanet.com/china-state-paper-lashes-us-monetary-policy.html

[5] Money Markets Ease on Unlimited Dollars Pledge: http://www.prisonplanet.com/money-markets-ease-on-unlimited-dollars-pledge.html

[6] Goldman Launches The SS QE3: http://www.prisonplanet.com/goldman-launches-the-ss-qe3.html

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