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Fed Divided on Continued U.S. Economic Stimulus
Several of the Federal Reserve's policy makers are questioning whether the central bank should continue its monthly purchases of $85 billion in Treasury bonds and mortgage securities.
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Several of the Federal Reserve's policy makers are questioning whether the central bank should continue its monthly purchases of $85 billion in Treasury bonds and mortgage securities.
Minutes of the Fed's January meeting, which were released on Wednesday, show that an unspecified number of the bankers are worried that that prolonged stimulus could damage financial-market stability.
Those policy makers suggested that the Fed should consider scaling back the program or ending it early. The central bank said previously it would continue the bond buyback until there is a "substantial" improvement in the job market.
The majority of the Fed's policy board voted to continue the stimulus. But the group agreed to review the issue at its March meeting.
Economists say the uncertainty alarms investors, who worry that ending the program could impede the U.S. recovery.
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