Fed Officials Concerned About Asset Purchases - Real Time Insight
20 Febrero 2013 - 9:22AM
Zacks
According to minutes of the FOMC meeting held on January
29--30, 2013, several officials are worried about the costs and
risks of the Fed’s bond purchases of $85 billion every month.
While they agreed that aggressive easing measures are intended
to encourage risk-taking, many members expressed concern about the
"potential for excessive risk-taking and adverse consequences
for financial stability”.
Most participants agreed that the asset purchases had been
effective in stimulating economic activity and easing financial
conditions, but “several participants emphasized that the
Committee should be prepared to vary the pace of asset purchases,
either in response to changes in the economic outlook or as its
evaluation of the efficacy and costs of such purchases
evolved”.
In the end, the committee voted to continue its asset purchases
at the current pace, with dissent from one member who expressed
concern that the potential costs and risks posed by the massive
asset purchases outweighed their uncertain benefits.
A review of the efficacy and costs of the asset purchases is
planned for the FOMC meeting in March.
Fed’s balance sheet could exceed $4 trillion by the end of the
year if the bond purchases continue at the current pace. However
disagreement among the members suggests that QE may come to an end,
earlier than previously expected.
Do you think that the Fed will slow-down or stop bond purchases
this year?
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