QE Coming?

From Bloomberg:

(Bloomberg) — Strategists see growing likelihood that the
Federal Open Market Committee will announce the return of large-
scale Treasury purchases at its Oct. 29-30 meeting to rebuild an
appropriate reserve buffer following last week’s tumult in repo
market.


* BMO estimates that the Fed needs a buffer of more than $200b,
while TD Securities sees $300b-$500b as likely; Morgan Stanley
expects purchases to start Nov. 1 Fed will likely buy $315b of Treasuries, including bills and coupons, over the six months starting Nov. 1, while continuing to run temporary open market operations


** In a phone interview Thursday, TD’s Gennadiy Goldberg said
the central bank will struggle to communicate that the purchases
are not a form of quantitative easing, and said the announcement
will likely be accompanied by another 25bp rate cut

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