The Federal Reserve will resume its bond purchases at some point in a strategy known as quantitative easing to bolster the economy because it wants to maintain credibility, said Vincent Reinhart , a former monetary affairs director at the U.S. central bank.
Odds are about 50 percent that the Federal Reserve will buy additional assets to keep its balance sheet stable and stimulate a slowing U.S. economy, said Vincent Reinhart , a former director of monetary affairs at the Fed.
Cutting back the Federal Reserve’s unprecedented monthly bond purchases is “firmly on the table” to get underway before a new chairman takes over in January, said Vincent Reinhart, chief U.S. economist for Morgan Stanley in New York.
Federal Reserve Chairman Ben S. Bernanke should assure investors next week that “he’ll do whatever it takes” to stimulate the slowing economy, said Vincent Reinhart, chief U.S. economist at Morgan Stanley.
The U.S. economy will probably expand at a moderate pace this year and next, in part because fiscal tightening will weigh on growth, according to Vincent Reinhart, chief U.S. economist at Morgan Stanley.