NEW YORK, Sept. 14 (UPI) -- Economists at Goldman Sachs said Tuesday the U.S. Federal Reserve could return to its policy of purchasing assets before the end of the year.
"We don't expect this at the Sept. 21 meeting, but in November or December there's certainly a possibility that it will be announced," said Goldman Sachs Group chief economist Jan Hatzius.
Hatzius predicted the central bank would return to buying U.S. Treasuries, staring with a target of $1 trillion, The Wall Street Journal reported.
The Fed stopped purchasing mortgage-backed securities and Treasury securities in March after completing a $1.7 trillion program that has been credited with keeping mortgage interest rates low and providing liquidity to the financial sector.
Goldman forecast a slow recovery with unemployment climbing from 9.6 percent to 10 percent in 2011. Consumer price growth would slow close to the edge of deflation, climbing 0.5 percent by the end of next year, the bank said.
