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View Full Version : The Fed unlikely to trim bond buying, may do more




bobbyw24
11-13-2010, 11:42 AM
(Reuters) - The Federal Reserve appears on track to buy the entire $600 billion in U.S. government debt it has committed to purchase, barring a sharp, unexpected shift in the economy's prospects.

If anything, lingering weakness and renewed concerns about global credit markets may lead top officials to lean toward doing more rather than less.

The U.S. central bank's decision last week to embark on a new round of monetary easing represented a shift in direction for policymakers, who until spring had been focused on possibly unwinding emergency steps taken during the financial crisis.

As such, policymakers would not likely have committed to a significant upfront figure if they saw the possibility that they would need to change course shortly thereafter. Instead, officials view the move much like traditional interest rate cuts, which are rarely taken back so rapidly.

http://www.reuters.com/article/idUSTRE6AB4G120101112