QE Looks Imminent, Look for Clues in Thursday’s Testimony - Goldman
Tweet Send to a Friend
Analysts will be listening to Ben Bernanke’s congressional testimony on Thursday for clues regarding future Fed monetary policy. Goldman Sachs analyst Jan Haztius expects Bernanke to begin laying out the Feds plans for future QE at this time. The question is no longer if the Fed will move, the question is in what direction.
According to Haztius, new QE measures could increase the size and composition of the Fed's balance sheet by purchasing long-term Treasuries, mortgages, or both. On the other hand, the Fed could simply push out the date of the first rate hike in the statement or make the first hike conditional on an economic criterion such as a nominal GDP target.
If the Fed does move, the decision will likely be made during the Fed meeting taking place on June 19th, but a clue might also be given during Bernanke’s congressional testimony on Thursday or during other Fed speeches this week.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
According to Haztius, new QE measures could increase the size and composition of the Fed's balance sheet by purchasing long-term Treasuries, mortgages, or both. On the other hand, the Fed could simply push out the date of the first rate hike in the statement or make the first hike conditional on an economic criterion such as a nominal GDP target.
If the Fed does move, the decision will likely be made during the Fed meeting taking place on June 19th, but a clue might also be given during Bernanke’s congressional testimony on Thursday or during other Fed speeches this week.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
You May Also Be Interested In
- FOMC Maintains $85B Bond Buying Plan
- Jefferies Boosts PT on Micron (MU) Post Q3; Sees 50% Upside
- UPDATE: Forest Laboratories Inc. (FRX) to Bid for Elan (ELN)
Create E-mail Alert Related Categories
Analyst Comments, Fed, Trader TalkRelated Entities
Ben S. Bernanke
Login with Facebook
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
