QE3 Could Total $600 Billion
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If the Fed moves on QE3, Chris Ahrens, head of U.S. interest rate strategy at UBS, thinks the total commitment would be $600 billion. The total amount could be split with $250 billion going to buy mortgage-back securities and the other $350 billion used for to buy treasuries.
They also pointed out that there might be limit to the amount of mortgage backed securities the Fed could buy since they already purchase up to 50 percent of originations.
He places odds of QE at 50/50, much lower than some analysts who put the probability at 100 percent.
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They also pointed out that there might be limit to the amount of mortgage backed securities the Fed could buy since they already purchase up to 50 percent of originations.
He places odds of QE at 50/50, much lower than some analysts who put the probability at 100 percent.
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