Some Fed Members Considered Cutting Easing on Inflation FearsSubmitted by bobbyw24 on Thu, 02/17/2011 - 07:07
Some Federal Reserve officials last month raised the possibility of scaling back the Fed's $600 billion Treasury bond purchase program, concerned that a strengthening economy could spur inflation.
The discussed took place at the Fed's last meeting, when the Fed boosted its forecast for economic growth this year. The brighter outlook reflected stronger spending by consumers and businesses spurred by tax cuts.
Minutes of the Fed's closed-door meeting released Wednesday, however, showed that a few members, who weren't identified, said it might be appropriate to reduce the size of the program or slow it down if incoming economic data point to "a sufficiently strong recovery." A stronger-than-expected recovery could fuel inflation.