Economists predict Fed’s quantitative easing to last through next year
Federal Reserve Chairman Ben Bernanke’s promise to help the economy until the job market recovers could force him to keep buying bonds until the final months of his term, according to a Bloomberg survey.
In a poll of 60 economists, 68 percent said that the Fed chairman’s third round of quantitative easing will last until late next year or beyond. Bernanke’s term ends in January 2014.
Just over half said the strategy will help boost employment, with a median estimate of 116,000 jobs over the course of next year.
Bernanke and his colleagues on the Federal Open Market Committee will conclude a two-day meeting in Washington, D.C., today and release a statement on policy, including their current plan to buy $40 billion in mortgage-backed securities each month for an indefinite period.
Bernanke said in August that by not buying bonds, the Fed would increase the risk of “structural damage” to the economy.