On the heels of the Federal Reserve’s announcement that it would increase the pace of its bond purchases, the financial sector is bracing for a return to normalcy in the U.S. economy.
While the Fed’s plan for increasing the size of its $85 billion bond purchases is expected to boost demand for assets such as corporate bonds and government debt, the Federal Deposit Insurance Corporation (FDIC) and the U.”s largest financial institutions are bracing to be back to normal soon, and the financial firms that have been holding out in the face of the Fed are not giving up easily.
The financial sector, which has struggled with high unemployment, a slow economy, and low consumer confidence, is expected back to full employment within the next year, according to the Wall Street Journal.
This would be the first time since the 1930s that the economy has been this sluggish since the Great Depression.
The Wall Street Bulletin reports that the FDIC expects a 10% increase in its portfolio of assets to $1.3 trillion, with the largest asset class, commercial paper, growing by 6.9% to $3.8 trillion.
The FDIC and the US Department of the Treasury are also planning to spend more than $300 billion on buying and selling Treasury securities.
The Fed announced that it is increasing its bond-buying program by a total of $85.9 billion, and that the Federal Open Market Committee is considering a $2 trillion increase in bond purchases.
The Treasury has previously indicated that it may increase its bond purchase program by $2.5 trillion.
Despite these changes, the FDAC said that it expects its portfolio to grow only by 0.4% in 2017, compared with the average growth rate of 1.5% in the last five years.
The FDIC will spend about $200 billion more than it planned to spend last year.
The Federal Reserve said on Friday that it had increased its bond buying program by 10% this year, with $2 billion in new bonds available.
It will buy $40 billion more of these bonds this year.
This increase in the Fed”s bond-burchling program is expected, as it is in every year since the 2008 recession, but the Federal Trade Commission (FTC) has said it should be expected to continue at the same pace.
However, this could be a big blow to the financial system, which would not be able to continue as the Fed continues to buy assets that have not been available to it for a long time.
“It”s not just about buying bonds anymore, but buying stocks, real estate, and bonds,” said Matt Biederman, senior investment strategist at TD Ameritrade.
In addition to slowing the pace at which the Federal Government purchases assets, the Fed is also targeting a slowing in the demand for commodities.
A study by the Bank of America Merrill Lynch and Morgan Stanley found that a 5% rise in oil prices, a 10-year low, would put downward pressure on the value of the dollar.
As a result, the dollar could begin to weaken against the euro and other currencies.”
We”re seeing a lot of signs that the market is getting ready for a hard landing in 2017,” Biedemer said.
“That could cause the Fed to move more aggressively to cut back on its bond purchasing.”
While the financial markets have been anticipating a soft landing, the economy was already weak in 2016 and 2017, and they are likely to take a hard hit from the Fed,” Briedemer said, adding that the Fed should be mindful of the fact that the U was already on a hard-landing.
The Fed”S rate hike will likely not have the impact that the financial crisis had on the U, but it will be a huge blow to many companies that have suffered in the aftermath of the financial collapse.
For example, hedge fund manager Bill Gross, who was one of the most vocal critics of the Bernanke Fed in 2016, has been in a state of depression since the beginning of the year.
He has struggled to pay his bills and his bank accounts have been depleted, according the Wall St Journal.
Last month, Gross declared bankruptcy and filed for bankruptcy protection in California.
The WSJ reported that Gross”s bankruptcy filing came on the heels, however, of a recent announcement by Goldman Sachs that it was raising its interest rates on loans made to it by hedge funds.
Goldman Sachs was able to avoid having to pay interest on its loan payments, and it now has more than enough cash to fund its expenses for the year, the Journal reported.
The Financial Times reported that a former Goldman Sachs employee said the company was planning to cut expenses by up to $200 million.
According to the Financial Times, the cuts are expected to hit the financial services sector particularly hard, including healthcare, home