Medley says Fed to buy $500 bln in US debt -source
NEW YORK Oct 20 (Reuters) - The Federal Reserve plans to launch a program to buy $500 billion worth of U.S. Treasuries over six months but leave itself room for more buying, said a report from influential consultancy Medley Global Advisors, a source told Reuters on Wednesday.
"The Fed will reach a majority consensus to embark on a new round of sizable Treasury purchases at the end of its two-day November meeting, aimed at raising inflation expectations and gradually ... satisfying both sides of its inflation/growth mandate," the source said, reading directly from the report.
In a 1-1/2-page report titled: "Fed: Cutting Off The Tail", Medley said, according to the source: "they will try to manage expectations that this will immediately cause the unemployment rate to fall or produce (an) immediate growth spurt." (Reporting by Daniel Bases; Editing by James Dalgleish)
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