Survey: Fed Stimulus to End in 2014 12/09 07:28
The vast majority of business economists believe the Federal Reserve will
begin to pull back on its massive economic stimulus program in the first three
months of 2014, according to a November survey done by the National Association
of Business Economists.
NEW YORK (AP) -- The vast majority of business economists believe the
Federal Reserve will begin to pull back on its massive economic stimulus
program in the first three months of 2014, according to a November survey done
by the National Association of Business Economists.
The survey also showed a majority of economists believe the United States'
economic recovery will accelerate next year.
NABE surveyed 51 economists between Nov. 8 and Nov. 19 and found that 62
percent of respondents believe the Fed will pull back on its bond-buying
program in the first quarter of 2014. Another 30 percent believe the Fed will
begin to reduce its bond buying in the second quarter of 2014.
Combined, nine out of 10 economists believe the Fed's stimulus program will
wind down next year, after being place in its current form since December 2012.
The Federal Reserve has been buying $85 billion in bonds each month in an
effort to keep interest rates low and stimulate the economy. The central bank
was widely expected to taper its bond purchases in September, but decided to
wait and see more evidence whether the nation's economic recovery is
In its survey, NABE said its forecasters expect the U.S. economy will grow
faster next year than in 2013. The organization forecasts that the country's
economy will grow at a 2.8 percent annual rate in 2014 versus the 2.1 percent
annual rate it is expected to grow this year.
The partial shutdown of the federal government in early October likely had a
modest impact on economic growth, NABE said.
Of the forecasters polled by NABE, 73 percent said that the October shutdown
likely reduced U.S. economic growth in the fourth quarter by 0.5 percent or
less. Fewer than 25 percent of economists believed the shutdown had no impact
on the U.S. economy or even helped the U.S. economy.