NEW YORK: The U.S. stock market pullback has raised hopes that the Federal Reserve will ramp up asset purchases to boost the economy, but the sell-off was not steep enough to warrant any action, according to market participants, strategists and an advisor to the U.S. Treasury.
What is more likely is for the Federal Open Market Committee (FOMC), which will meet on Tuesday and Wednesday to set U.S. monetary policy, to switch its Treasury purchases toward more long-dated debt to keep long-term yields low, some strategists said.