Survey: Fed economic stimulus will end in 2014
by Ken Sweet, AP Markets Writer
December 09, 2013 12:10 PM | 192 views | 0 0 comments | 1 1 recommendations | email to a friend | print
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 sustainable.

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.



Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Comments
(0)
Comments-icon Post a Comment
No Comments Yet
*We welcome your comments on the stories and issues of the day and seek to provide a forum for the community to voice opinions. All comments are subject to moderator approval before being made visible on the website but are not edited. The use of profanity, obscene and vulgar language, hate speech, and racial slurs is strictly prohibited. Advertisements, promotions, spam, and links to outside websites will also be rejected. Please read our terms of service for full guides