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FSN: Fed Exit Plan May Be Redrawn as Assets Near $3 Trillion
Be prepared for the next great transfer of wealth. Buy physical silver and storable food.
by Craig Torres & Josh Zumbrun
Bloomberg.com
A decision by the Federal Reserve to expand its bond buying next week is likely to prompt policy makers to rewrite their 18-month-old blueprint for an exit from record monetary stimulus.
Under the exit strategy, the Fed would start selling bonds in mid-2015 in a bid to return its holdings to pre-crisis proportions in two to three years. An accelerated buildup of assets would also mean a faster pace of sales when the time comes to exit — increasing the risk that a jump in interest rates would crush the economic recovery.
“There is certainly an issue about unwinding the balance sheet” in a way that “is effective and continues to support the recovery without creating inflation,” St. Louis Fed Bank President James Bullard said in an interview in October. The central bank might have to “revisit” the 2011 strategy, he added.
Continue Reading at Bloomberg.com…
2012-12-07 20:45:46
Source: http://silveristhenew.com/2012/12/07/fed-exit-plan-may-be-redrawn-as-assets-near-3-trillion/
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