Bofa Global: Fed Will Gradually Cut The Program To Buy Assets In November
Bofa Global analysts said that in November could be the time when the US Federal Reserve (Fed) cut the program to buy large-scale assets, shorten the time compared to the previous forecast in the month 1 / 2022. This newspaper takes place a few days after the Federal Open Market Meeting Minutes (FOMC) shows that most Fed's top 19 officials feel appropriate to start decrease Purchase rate of 120 billion USD bonds per month This year. The procurure of buying treasury bonds and securities is ensured by FED's mortgage assets that help prevent the financial crisis in pandemic, equal To keep the liquidity market and loose credit conditions, simultaneously promoting economic recovery. With children all over the United States are expected to return to the classroom in this fall, this is the period Luchou will release many parents returning to the labor force, the Fed can also be more and more willing to start the process of cutting the purchase of assets. " FOMC in July changed the case of our facility for the forecast of the Fed time to cut the Protection Program, pulling the timeline to about two months from January 2022 in November 2022, however we Expectations about the FED will move slower and will depend on the data, "said the Strategic Group Meghan Swiber at Bofa Research written in a note on Friday (August 20)