Some members of the Federal Reserve were considering taking more aggressive actions to spur the economy at the FOMC’s September meeting, minutes released today show. In the end, the Fed decided to undertake “Operation Twist”: sell short-term securities and buy longer-term securities to force long-term rates down.
Three members of the panel voted against the action. But others appeared ready to do even more.
“Two members said that current conditions and the outlook could justify stronger policy action, but they supported undertaking the maturity extension program at this meeting as it did not rule out additional steps at future meetings.”
In addition, QE3 is apparently still on the table.
“A number of participants saw large-scale asset purchases as potentially a more potent tool that should be retained as an option in the event that further policy action to support a stronger economic recovery was warranted.”
Of, course, the Fed being the Fed, the minutes do not actually give the actual number specified by “a number of participants”.
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