Federal Reserve Chairman Ben S. Bernanke says he’ll stoke the economy until the job market recovers “substantially.” That promise may force him to keep buying bonds until the final months of his term ending in January 2014, according economists in a Bloomberg survey.
Sixty-eight percent of 60 economists said the Fed chairman’s third round of quantitative easing will last until late next year or beyond. Just 51 percent of them said the strategy will help boost employment, with a median estimate of 116,000 jobs over the course of next year.
The U.S. economy grew at a 1.3 percent pace in the second quarter, slower than a prior estimate of 1.7 percent, after increasing at a 2 percent rate in the first. Economists predict gross domestic product will rise by 1.8 percent in the third quarter, according to the median of 85 estimates in a Bloomberg survey.