Fed Minutes Show Divergence Of Opinion On QE3
14:09, 16th May 2012
(RTTNews) - The Federal Reserve remains divided on the prospects for a third round of quantitative easing, according to the minutes of the most recent Federal Open Market Committee meeting.
At the conclusion of its April 25 meeting, the Fed promised to keep interest rates low at least through late 2014, but offered no further accommodation in support of the sluggish economy.
After unprecedented support measures taken during the worst of the recession, the Fed has adopted a wait-and-see stance over the past year.
"Several" voting members are in favor of additional asset purchases if the economic recovery falters, up from language in the previous months indicating "a few" potential advocates for QE3.
However, only one member sees the need for the Fed to crank up the printing presses at this time.
Furthermore, the minutes showed an rising number of Fed members expect tightening measures will be appropriate before late 2014.
Other than the Fed's customary warning about downside risks related to Europe, there was no mention of the latest developments in Greece, where voters elected a slew of left-leaning politicians in an effort to sabotage austerity measures.
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