Fed’s bond buying may exceed $600bn: Williams
Federal Reserve Bank of San Francisco President John Williams said the central bank may buy more than $600 billion in bonds by extending its third round of quantitative easing well into next year.
The Federal Open Market Committee last month affirmed its decision in September to buy $40 billion of mortgage-backed securities each month without specifying the total size or duration of the purchases. Williams, who holds a vote on policy this year, was among the first Fed officials to advocate open- ended bond buying.
“It should be at least that big but I would think it would probably be bigger given my view on how slow the economy is going,” Williams said yesterday, referring to his Aug. 31 comment that the Fed should purchase $600 billion in bonds in a third round of asset purchases.
“It’s going to take a long time for unemployment to come down and growth to really pick up,” Williams said to reporters after a speech in Irvine, California.