Fri, Feb 22, 2013 - Page 15 News List

US Fed signals possible slowing of QE

POLICY DEBATE:Minutes of the last FOMC meeting showed differences on reducing asset purchases and said a review of quantitative easing would take place next month


Fed officials are also considering new ways to present economic projections in their public communications.

Many participants expressed interest in using their quarterly projections to convey information about future asset purchases and the Fed’s balance sheet.

Fed has pushed the benchmark interest rate close to zero and expanded its balance sheet to more than US$3 trillion.

The minutes said “many participants” expressed concern about “potential costs and risks arising from further asset purchases.”

Several members discussed “possible complications” that additional purchases could have as the Fed begins to exit the policy, a few mentioned inflation risks and some mentioned risks to financial stability.

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