CNBC Survey: QE2 A Near Certainty
CNBC
Fed Certain to Act in November In a Big Way: Survey
By: Steve Liesman
Senior Economics Reporter
Following Friday’s disappointing jobs report, market participants are now virtually certain that the Federal Reserve will announce that it will resume buying assets at the conclusion of its November meeting and do so in a sizeable way, according to an exclusive CNBC Fed Survey.
Nearly 93 percent of the 70 respondents, including economists, fund managers and traders, believe the Fed will boost the size of its portfolio, up from 69 percent in the survey two weeks ago.
Of those who expect the Fed to move, 86 percent look for an announcement in November, up from 38 percent in the last survey.
Market participants forecast that the Fed will announce plans to purchase $500 billion in assets at the conclusion of the upcoming meeting, the first time the question has been asked...
Miller Tabak economist Dan Greenaus, in response to the survey, said market participants should focus on what the Fed chairman is saying.
"The current public debate among regional bank Presidents is clouding the market's view of what is ultimately most important," he said. "The Chairman has said almost explicitly the risk is doing too little, not too much and among a divided FOMC, the Chairman's views are likely to be paramount. Viewed that way, a second round of asset purchases, regardless of its complexion, seems all but assured." ...