Economists Surveyed Expect Fed to End QE-3 Stimulus In 2014

Posted by: : Paul EbelingPosted on: December 10, 2013 Economists Surveyed Expect Fed to End QE-3 Stimulus  In 2014

Economists Surveyed Expect Fed to End QE-3 Stimulus  In 2014

The majority of business economists believe the US Federal Reserve will begin to pull back on its QE-3 economic stimulus program in Q-1 of Y 2014, according to a November survey done by the National Association of Business Economists.

The surveyalso showed a majority of believe the United States’ economic recovery will accelerate next year.

NABE surveyed 51 economists between 8 – 19 November and found that 62% of respondents believe the Fed will pull back on its bond-buying program in Q-1 of Y 2014. Another 30% believe the Fed will begin to reduce its bond buying in the Q-2 of Y 2014

Combined, 9 out of 10 economists believe the Fed’s stimulus program will wind down next year, after being place in its current form since December 2012.

The US Federal Reserve has been buying $85-B in bonds each month in an effort to keep interest rates low and stimulate the economy. The central bank was widely expected to taper its bond purchases in September, but decided to wait and see more evidence whether the nation’s economic recovery is sustainable.

In its survey, NABE said its forecasters expect the U.S. economy will grow faster next year than in Y 2013. The organization forecasts that the country’s economy will grow at a 2.8% annual rate in Y 2014 versus the 2.1% annual rate it is expected to grow this year.

The partial shutdown of the federal government in early October likely had a modest impact on economic growth, NABE said.

Of the forecasters polled by NABE, 73% said that the October shutdown likely reduced US economic growth in Q-4  by 0.5% or less. Fewer than 25% of economists believed the shutdown had no impact on the US economy or even helped the US economy.

Stay tuned…

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Paul Ebeling

 

 

 

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Paul Ebeling

Pattern Recognition Analyst, equities, commodities, forex
Paul Ebeling is best known for his work as writer and publisher of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly-regarded, weekly financial market letter, where he enjoys an international audience among opinion makers, business leaders, and respected organizations. Something of a pioneer in online stock market and commodities discussion and analysis, Ebeling has been online since 1994. He has studied and worked in the global financial and stock markets since 1984.
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