According to the US investment bank Goldman Sachs, the probability that the Federal Reserve will start limiting quantitative easing has already increased significantly this November. The reduction in the volume of purchases of government bonds and mortgage bonds is to come at every subsequent meeting of the Fed.
Investment bank Goldman Sachs has increased the likelihood that the Federal Reserve (US Federal Reserve) will reduce its quantitative easing purchases as early as November this year, to 45 from the previous 25 percent. At the same time, it reduced the probability that the Fed would start in December, from the original 55 to 35 percent.
According to analysts at Goldman Sachs, at every next monetary policy meeting of the Fed, a decision will be made to limit these purchases by $ 15 billion. Ten billion will be used to reduce purchases of government bonds and five billion to reduce redemptions of mortgage bonds.
“If the reduction in quantitative easing proceeds at a rate of $ 15 billion per Fed monetary policy committee meeting, securities purchases will be completely shut down in September 2022,” Goldman Sachs analysts said. Further tightening of monetary policy could then only take place through an increase in interest rates.
