NEW YORK ( TheStreet) -- Don't expect the Federal Reserve to scale back its monthly $85 billion in purchases of mortgage-backed securities and longer-term Treasuries.
The Fed in December implemented $45 billion a month in longer-term Treasury purchases to fill the void left by the conclusion of its Operation Twist program, and economists and analysts since that move have discussed when the central bank may start to taper monetary stimulus.
"I can't imagine with all these ingredients in place that the Fed's going to come out
Those ingredients include sustained economic weakness in the eurozone, cautious signs of a slowdown in China, Abenomics's recent stumble in Japan and U.S. data reports that suggest a non-inflationary environment, among other trends.Critics of The Fed's quantitative easing efforts have feared that the massive purchases of bonds and securities would flood the marketplace with cash and trigger inflationary pressures in the system. Consumer price index and producer price index reports since the financial crisis have consistently held below the central bank's target of 2% annual inflation. The Bureau of Labor Statistics reported Tuesday that the consumer price index inflation for all items increased 1.4% over the past year before seasonal adjustment. "Data