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.
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.
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.
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.
In November 2009, Senate Banking Committee Chairman Christopher Dodd advanced a radical proposal: to create a super-regulator that would take over most of the bank supervision that had been done by the Federal Reserve System, the Federal Deposit Insurance Corp. and other agencies.
The European Central Bank will probably end up buying more sovereign debt in response to the region’s crisis because of its “flexible balance sheet,” said Vincent Reinhart, chief U.S. economist for Morgan Stanley.