Hilsenrath on Williams & Fed Bond Buying

By: Eamonn Sheridan

Recapping this article that appeared in the WSJ: Fed's Williams: Fed Not Near Limit on Bond Buying Some Fed officials have been concerned that if the central bank buys too many bonds in these markets it could become such a big player that these markets become illiquid and stop functioning properly. Mr. Williams said the Fed isn't close to causing those kinds of problems. He said he wants to keep buying $85 billiong per month of long-term securities in 2013. The Fed next meets Dec. 11-12. It is widely expected to continue its $40 billion-per-month mortgage-bond-buying program. It must decide what to do about its Treasury purchase program, known as Operation Twist. Under the program, which expires at year-end, the Fed is buying $45 billion per month of long-term Treasurys QE just keeps rollin', QE keeps on rollin' along.