Fed’s Next Steps Divide Economists as Purchases Wind Down

Federal Reserve policy makers are almost certain to fulfill their plan to buy $600 billion in Treasuries, a survey of economists shows. How they finish the purchases and what they do next is a matter of disagreement.

Of 50 economists surveyed by Bloomberg News last week, 49 said the Fed will buy the full amount of bonds in a bid to boost the economy. Thirty-one said the central bank won’t adjust the pace or duration of the purchases, as it did in the first round of so-called quantitative easing in 2009-10. Respondents were further divided over how long the Fed will keep its bond portfolio stable after the purchases end, with a plurality of 16 betting on a period of four to six months.