Fed’s bond buy­ing may ex­ceed $600bn: Wil­liams

The Pak Banker - - Front Page -


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.

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