The Federal Reserve extends the RMP pause until mid October, leading to divergent views among Wall Street institutions

The Federal Reserve has extended the suspension period of Reserve Management Purchase (RMP) to mid October. Strategists from Wells Fargo and Bank of America expect the Federal Reserve to resume RMP bond purchases in mid October. Samuel Earle, a strategist at Barclays Bank, expects the Federal Reserve to purchase $10 billion of bonds in October and $20 billion in November. Citigroup strategists believe that the Federal Reserve will continue to suspend RMP for the remainder of this year. (Source: Federal Reserve)