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)

. The research team said, though The time of cutting the asset purchase program will be an important key, but the speed and composition of the cut also plays an important role as the analyst team of Bofa Global argues that the recovery America continues towards the Fed's goal of being "more significant progress" from the worst shocks of the pandemic last year, but any Fed decision about withdrawing the currency support policy will Still depending on many elements. Fridays (August 20), Chairman of Fed Dallas, Rob Kaplan told Fox Business Network that he could rethink the Fed Fed call quickly Hall started to reduce the amount of monthly asset purchase if the spread of the Delta variant is slowing down the economic growth. Although the program to buy assets with a large scale of the Fed is to save the financial markets but Also attracted criticism
Some experts worry that the FED monetary policy has caused the valuation based on the risk in the market, which can create bubbles and promote uneven recovery because of the accumulated property Large is the rich, not the poor when stock prices, financial assets and house prices have set a record high in the gymnasty period. Tac Porch / according to foreign press

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