The Fed: FOMC members sour on growth, unemployment & Disagreed Over $600B StimulusSubmitted by bobbyw24 on Tue, 11/23/2010 - 15:26
WASHINGTON (MarketWatch) — The Federal Reserve’s governors and regional presidents have grown more sour on growth and unemployment, with some saying it could take more than six years for the jobless rate to return to normal levels, according to a summary of projections released Tuesday.
“Relative to their previous projections in June, participants saw weaker real activity this year and expected a somewhat more gradual economic recovery over the next several years,” the minutes from the Nov. 2 and Nov. 3 meeting say.
Federal Reserve policy makers disagreed over expanding record monetary stimulus this month, with a majority seeing a boost to growth and employment and a minority concerned about risks to inflation and the dollar.
Most officials at the Nov. 2-3 meeting saw additional securities purchases as keeping interest rates low and boosting asset prices, the Fed said in minutes of the session released today in Washington. The Fed also said it’s considering ways to improve communication with the public, such as starting press briefings by Chairman Ben S. Bernanke.
The report illustrates the tension within the Fed over the decision to buy $600 billion of Treasuries, which has since attracted criticism from Republican politicians at home and some governments abroad. Increased internal disagreement over the purchases may hamper officials’ resolve to complete the entire amount of purchases scheduled through June.