Wednesday, April 10, 2013

Fed Officials Split Over End of Bond Buying

http://www.nytimes.com/2013/04/11/business/economy/fed-officials-split-over-end-of-easing.html?ref=economy&_r=0

The Federal Reserve will continue its plan on buying bonds for the next month in hopes of improving the current economy.  In the recent FOMC meeting, there was much controversy on whether to continue the recent purchases of bonds due to the "improved outlook (of the economy) since the fall." Also, because the labor market looked to be improving before the recent unemployment numbers were released, many board members felt that the risks of stimulating the economy through open market operations were not equal to the return they would be receiving.  The fed will continue buying $85 billion worth of bonds for the next month in hopes of stimulating the economy. 

1 comment:

  1. Since the economy has been improving so much recently it is good to hear the Fed considering a slow down on open market operations. But, even though the economy as been improving the unemployment rate is still at a higher level than we would like it to be at so they should consider if slowing the open market operations will cause the economy to contract back into a slight recession. It seems a little soon to slow the help to the economy.

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