Fed May Tweak Approach to Stimulus (Reuters)

Open-ended bond-buying would allow for more aggressive action.

The Federal Reserve is considering making any additional quantitative easing open-ended, sources have told Reuters. New bond-buying would have no time limit, which would allow for very aggressive action, though the Fed’s initial purchases would likely be cautious.

Minutes from the Fed’s August meeting indicated that more stimulus is likely unless the economy picks up. Open-ended bond-buying would allow for more flexibility and adjustments based on new developments. Its only limit would be the supply of securities available. It could also help downplay “sticker shock” from large bond-buying commitments, which might help win over wary members of the policy committee.

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