Call it QE Whatever.
The Federal Reserve will “amplify record accommodation” by announcing $45 billion in monthly Treasury buying that will push its balance sheet to almost $4 trillion, according to a Bloomberg survey of economists.
The news service reports that 48 of 49 economists predict that the Federal Open Market Committee on Wednesday will purchase Treasuries to bolster an existing program to buy $40 billion in mortgage bonds each month. The panel pledged in October to continue that plan until the labor market improves “substantially.”
“It’s going to be massive and open-ended in size,” Joseph LaVorgna, chief U.S. economist at Deutsche Bank Securities Inc. in New York and a former New York Fed economist, told Bloomberg.