| IRVINE, Calif.
IRVINE, Calif. Nov 5 The U.S. Federal Reserve's
latest round of asset purchases will probably top $600 billion,
surpassing its second round of bond-buying, as the central bank
continues to buy assets until the labor market improves, a top
Fed official said on Monday.
The effect of the Fed's asset purchases on the economy will
depend on how much market participants think the central bank
will ultimately buy, something the Fed itself does not know,
John Williams, president of the San Francisco Federal Reserve
Bank, told reporters after a lecture at the University of
But given the state of the labor market and the pace at
which it is improving, the Fed will likely need to keep buying
assets "well into next year," he said. The Fed will want to see
sustained jobs gains and a consistent drop in the unemployment
rate before it stops buying assets, he said.
The Fed began its third round of asset purchases, known as
QE3, in September, beginning with $40 billion a month in
mortgage-backed securities and promising to continue or expand
the purchases if the labor market does not improve