Pimco's Crescenzi Expects Fed to Start Open-Ended Easing With $500 Billion

The Federal Reserve will likely begin a program of bond buying with about $500 billion in purchases and leave it open-ended for “some chance of doing more,” according to Pacific Investment Management Co.’s Tony Crescenzi.

Asset prices have been bolstered by the expectation of so- called quantitative easing and also prospects for the Republican Party to gain control of the House of Representatives, he said in an interview with Bloomberg Television.

To contact the reporter on this story: Candice Zachariahs in Sydney at czachariahs2@bloomberg.net

To contact the editor responsible for this story: Garfield Reynolds at greynolds1@bloomberg.net

Nov. 2 (Bloomberg) -- Tony Crescenzi, a market strategist and portfolio manager at Pacific Investment Management Co., talks about the prospects for Federal Reserve monetary policy. The Fed will probably begin a new round of unconventional monetary easing this week by announcing a plan to buy at least $500 billion of long-term securities, according to economists surveyed by Bloomberg News. Crescenzi also discusses the outlook for Treasuries and his investment strategy. He speaks from Newport Beach, California, with Susan Li on Bloomberg Television's "First Up." (Source: Bloomberg)