NEW YORK Oct 20 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)