The FOMC is widely expected to announce a new round of quantitative easing (QE2) at the end of the monetary policy meeting today and tomorrow, as indicated by Fed Chairman Bernanke and other members of the committee monetary policy in recent weeks. Many, however, are the uncertainties regarding the size of the program. It is very unlikely that the new program will exceed the size of QE1 (USD1.7trn), with a real chance that the Fed may decide to adopt progressive measures seconds economic developments. A clear possibility is that the Fed will announce the purchase of long-term bonds with a value of USD300/500bn in the next six months. In the statement to be issued after the meeting, the FOMC is expected to confirm that "measures of inflation are now at levels somewhat lower than that members of the Committee's view is consistent with its mandate of promoting maximum employment and stable prices "and that the rate on the Fed Fund is intended to remain at exceptionally low levels for a" long term ".
0 comments:
Post a Comment