Wall Street is urging the Federal Reserve to purchase a total of US$1.25 trillion of assets to be covered under the most recent debt purchase program that is intended to stimulate the economy. This was learned through a Reuters poll done last Friday.
The median forecasts from the economists from fifteen US primary dealers polled said that the US central bank to purchase US$1.25 trillion assets, a rise from US$1 trillion in a similar poll conducted last month. The primary dealers are the large financial institutions that deal directly with the Federal Reserve.
The Fed had previously purchased US$2.3 trillion in mortgage and government debt in prior rounds of quantitative easing after the financial crisis of 2007.
From the fifteen dealers, eleven are expecting the Fed to keep doing the latest stimulus program commonly known QE3 well into 2014 while the remaining four expects the Fed to end it by 2013.
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