“Stronger U.S. economic data have reduced the probability that the Federal Reserve will announce a third round of so-called quantitative easing when policy makers gather next month, Goldman Sachs Group Inc. said.
“We do not expect a move to QE3” at the Sept. 12-13 Federal Open Market Committee meeting, Jan Hatzius, chief economist at Goldman Sachs in New York, wrote in a note to clients, citing retail sales that rose more than forecast in July.
“While QE3 at the September 12-13 FOMC meeting remains possible, our best estimate is that it will take until late 2012/early 2013 before Fed officials return to balance sheet expansion,” Hatzius wrote.”
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QE: T bond interest paid to Fed is returned to Gov, to reduce debt or buy votes.