The federal reserve will expand the accommodation record tomorrow announced 4.5 billion dollars in the monthly Treasury bonds to buy, will impel its balance sheet nearly $4 trillion, according to bloomberg survey of economists this.
Forty-eight 49 economists forecast, the federal open market committee will buy Treasury bonds, in order to strengthen existing procedures, $a month the price of $4 billion to buy mortgage-backed bonds. The team commitment in October to continue this plan, until the Labour market "increase".
"It will be great, the size of the open, said:" in New York deutsche bank securities company chief American economists, Joseph's pull vogli, and former New York federal reserve bank economists.
Chairman Ben bernanke and his colleagues of the federal open market committee according to the purchase of at least to the first quarter of 2014, in December 7-10 survey estimated median. They are expanding balance sheet after more than $2.86 trillion, tried to stimulate economic growth and reduce the unemployment rate is 7.7%.
"They say the stimulation of what is required to maintain economy", strengthen the industry, such as cars and housing improvement, chief economist Sylvia (John Silvia), Wells Fargo bank company, America's largest mortgage providers.
In Washington today the two days of the federal open market committee set, and plan in the afternoon when 12 about 30 points growth, unemployment and inflation forecast later, will be issued a statement, tomorrow's policy. Bernanke is so in the afternoon at the press conference, the release of the prediction.
Distortion operation
The central bank is scheduled to end this month distortion operation, the exchange value of $4.5 billion per month short-term national debt, long-term government bonds. The plan to remain the same balance sheet total scale, and the new national debt purchase will expand.
The fed's a new round of quantitative easing policy will reach $1.1 trillion, about $620 million of mortgage-backed securities and us $50 billion of us treasuries, dollars, according to the survey estimated median.
By increasing the buy Treasury bonds, policy makers will continue to lower mortgage rates, and create conditions, will be good for the housing market continued recovery, the international strategy and investment group co., LTD., managing director in Washington, said: "roberto Perli,.
"- if house prices go up - means that will have more family to their mortgage refinancing, said:" Perli, former federal reserve currency of the department of mysteries economists. "It's like a tax or a raise, because you have more disposable income in your pocket."
Housing recovery
The federal reserve to buy mortgage bonds, help restore the housing market fall pushing thirty fixed rate mortgage loans reached a record 3.31% last month.
Sales of new homes in October compared with the previous year increased by 17%, and a house sales increased by 11%. House prices rose 3%, from early September last year, according to the S&P/Case - Shiller index twenty cities housing price index.
In thunder's small, chief executive Douglas, America's biggest luxury residential builders thor brother company, said: "pent-up demand, rising house prices, low interest rates and improve customer confidence motor housing market buyers," on December 4 earnings conference call.
The builders stock rise, six years of slump. Standard &poor's Supercomposite residential building index (S15HOME) 11 residential builders have risen 72% this year, compared with 13% or more broad S&P 500.
Even recently improved, house prices is still lower than its July 2006 29% of the peak.
The "low"
, moody's capital markets group in New York's chief economist John Lonski said: "the policy makers" does not want to mortgage rates climb much higher. "They will do our best to maintain long-term borrowing costs low."
Bernanke November twenty day speech said, there is no evidence that the fed stimulation promoting consumption prices than the central bank's target of 2%. "In the future years of inflation is likely to still will be close to or slightly lower than the committee goals, he said:" in New York city.
The bounce of the house and did not show signs of active Labour market. The average wage growth 153000 in 2012, 2011 and 151000 so far. Employment increased in November 146000, the U.S. labor department said last week. The unemployment rate fell to 7.9%, one month before the labor atrophy.
Economists don't predict growth will take off in 2013. At an annual rate of 2.7% in the third quarter gross domestic product (GDP) growth, according to data released by the ministry of commerce. In a separate bloomberg survey of economists predict, grew by 2% in 2013.
Plus tax
Heavy on economic prospects of more than us $60 billion dollars to increase taxes and spending cuts next year plans to take effect unless congress behavior. The congressional budget office says, austerity could push the economy into a recession next year.
Buy Treasury bonds will constitute the "insurance, if there is between congress and President bush fail to reach an agreement, the fed there, in order to prevent more sinking airflow," silvia said.
The federal open market committee may wait until March 19 to twenty day conference in through the unemployment and inflation threshold value, will consider to raise the federal funds rate, according to the survey of economists estimated median.
Forty-eight of 49 economists said, the federal reserve will not setting threshold tomorrow. At present, the fed said it would keep its main interest rates close to zero, at least until the middle of 2015.
The fed has not listed next September announced that its current accommodation, duration or size limit.
In the first round of quantitative easing monetary policy, begin from 2008, the central bank to buy a $1.25 trillion mortgage backed securities, $$17.5 billion federal agency debt dollar and us $30 billion of us treasuries. In the second round, announced in November of 2010, the federal reserve to buy 60 billion dollars worth of us treasuries.




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