This nautical chart illustrates the consummate history of the Federal Reserve's quantitative easing program, along amongst Goldman Sachs primary economist Jan Hatzius's forecast for how "QE3" volition locomote injure down.
"The Jan FOMC should locomote fairly uneventful, next pregnant policy changes made at the prior meeting," writes Hatzius inwards a preview of adjacent week's monetary policy decision.
"The FOMC volition probable choke on to taper the stride of its property purchases past times a farther $10 billion — split every bit betwixt Treasuries together with mortgage-backed securities — as hinted at inwards Chairman Bernanke’s press conference next the Dec meeting. While the Committee has taken pains to annotation that the path of property purchases is 'not on a preset course,' a substantial alter inwards the outlook would probable locomote required for the Fed to either interruption or accelerate the gradual stride of tapering started at the concluding meeting. We mean value this relatively high bar has non been met, about weaker recent information notwithstanding. Based on a roughly $10 billion per coming together tapering schedule, the concluding QE3 purchases should hap inwards Oct 2014."