According to the
of the Federal Open Market Committee (FOMC) meeting held on March
19-20, 2013, released this morning, many members remained
concerned about costs and risks of the Fed's bond purchases of
$85 billion every month.
Most of them agreed that the program should continue at the
current pace at least through midyear, while a few others thought
it would be appropriate to continue purchases at the current pace
through the third quarter or end of 2013.
Most participants agreed that the asset purchases had been
effective in stimulating economic activity and that the benefits
continued to exceed the costs, but a couple of participants
thought that the central bank should begin to taper the purchases
before midyear or end the purchases altogether.
Only one FOMC member-Esther George dissented against the final
vote, as she thought that the policy was too accommodative and
was posing risks to Fed's economic objectives.
However, the committee's discussions were based on improving
labor market earlier this year, while the March payroll report
released after the meeting showed that the labor market was still
weak. Some of the other economic reports released recently also
have been soft.
Given weaker than expected data, Fed would probably continue
the asset purchases at current levels at least for the next
couple of quarters.
The minutes were released in the morning instead of 2 pm EST
as scheduled, as some copies were accidentally sent out
yesterday. The committee also released economic projections
by its members along with the minutes.
PIMCO-TOT RETRN (BOND): ETF Research Reports
SPDR-GOLD TRUST (GLD): ETF Research Reports
SPDR-SP 500 TR (SPY): ETF Research Reports
To read this article on Zacks.com click here.