FXstreet.com (Córdoba) - The minutes relating to the Federal Open Market Committee (FOMC) meeting June 19-20, in which Fed officials decided to extend the Operation Twist, revealed officials were split over the need for more stimulus.
A few members thought further policy stimulus likely would be necessary to promote satisfactory growth in employment, while others believed that would only be justified if economic recovery loses momentum or inflation drops.
That's a shift from the central bank's April policy meeting, where several members thought more action could be needed "if the economy lost momentum or if inflation seemed likely to remain below its mandate-consistent rate of 2 percent over the medium run".
The Fed reiterated that rates would likely remain at "exceptionally low levels" at least through late 2014. The minutes also showed that several Fed officials want to develop "new tools" to ease financial conditions.
Only four Fed officials mentioned more quantitative easing in their individual forecasts, two in support of more easing and two saying they would consider it.
Jeffrey M. Lacker, Richmond Fed, was the only dissenting as he opposed continuation of the maturity extension program. He did not believe that further monetary stimulus at this time would make a substantial difference for economic growth and employment without also increasing inflation by more than would be desirable.
A few members thought further policy stimulus likely would be necessary to promote satisfactory growth in employment, while others believed that would only be justified if economic recovery loses momentum or inflation drops.
That's a shift from the central bank's April policy meeting, where several members thought more action could be needed "if the economy lost momentum or if inflation seemed likely to remain below its mandate-consistent rate of 2 percent over the medium run".
The Fed reiterated that rates would likely remain at "exceptionally low levels" at least through late 2014. The minutes also showed that several Fed officials want to develop "new tools" to ease financial conditions.
Only four Fed officials mentioned more quantitative easing in their individual forecasts, two in support of more easing and two saying they would consider it.
Jeffrey M. Lacker, Richmond Fed, was the only dissenting as he opposed continuation of the maturity extension program. He did not believe that further monetary stimulus at this time would make a substantial difference for economic growth and employment without also increasing inflation by more than would be desirable.
