“Fed leaders had varied views on August policy action”
“Federal Reserve officials were divided at their Aug. 10 meeting over whether they should resume purchases of Treasury bonds and what impact the move could have on the nation’s economy, according to minutes released Tuesday.
In the end, the Fed’s policymaking committee elected to reinvest money from maturing mortgage securities in government bonds by a 9 to 1 vote. But the minutes show that there was wider disagreement behind closed doors than that final tally may suggest.
Most members of the Federal Open Market Committee thought it unwise to allow the Fed’s balance sheet to contract, which would have happened were it not for their action, because that would tighten monetary policy when the economic outlook was weakening, according to the minutes.” Read more.
“Fed leaders had varied views on August policy action”
Neil Irwin
The Washington Post, August 31, 2010.
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