Key Fed Questions: When and How Much?

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Sept. 18 (Bloomberg) -- On today's "The Real Deal," Michael McKee reports on Federal Reserve monetary policy. He speaks on Bloomberg Television's "In The Loop." (Source: Bloomberg)

A survey came out yesterday and most americans do not know what we're talking about.

Take a step back and talk about what we are actually talking about.

Besides began buying $40 billion a month in mortgage backed securities mortgage rates to record lows.

Facing the fiscal cliff in december, they added another 45 billion per month in treasury bonds.

Together the programs became known asqe qe3,'it was open ended and no fixed amount.

Now it appears the time has come.

The questions on the table today are when do they start?

And how long will it take to end?

How much do they come back at any one time?

Interesting about what you just said.

Tell them why it matters so much.

This is unconventional monetary policy.

Investors see the pace of purchases as a clue as to when this might happen.

What do we expect here?

According to the survey of ben bernanke, he said it would be a bit dependent.

Data has not been great yet.

Treasuries cut by $5 billion and no change at all to mortgages.

Expect dovish comments about the growth outlook in the statement and reassurance from ben bernanke in the press conference.

Pre-k's we saw what happened with interest rates back in may and june.

Can he sell that?

That is a very good question.

Much of the market reaction will end on that that economic forecast.

For the first time they will include projections for 2015. touch projections for the fed funds rate.

You can see the majority sol rates higher than one percent in 2015. by 2016 wall st expecting to and a quarter percent.

Anything above that, pretty violent reaction.

Michael mckee.

Staying with the fed decision, high profile hedge fund investors say fullback will not stop the pullback for now.

Julie hyman has been gathering comments.

Why do they think this will be a problem?

You hear a lot of market

This text has been automatically generated. It may not be 100% accurate.


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