Economists Expect the Fed to Boost Asset Purchases
Posted at 9:45 a.m. on Dec. 12, 2012
A Bloomberg survey of economists shows that most believe that the Federal Reserve will replace the expiring Operation Twist program with a new open-ended asset purchasing program that will further boost monetary stimulus efforts.
“The central bank this month is scheduled to end Operation Twist, in which it swaps $45 billion of short-term Treasuries each month for longer-term government debt. That program kept the total size of the balance sheet unchanged, while new Treasury purchases would expand it.”
The Federal Open Market Committee will release a statement on any policy changes today at 12:30pm EST.