Fed sees steady recovery despite turmoil, minutes show

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Source: The Washington Post

Global turmoil and potentially steep budget cuts have heightened economic uncertainty, Federal Reserve leaders concluded at their last policy meeting. Yet the nation’s recovery was still on track, the officials said in choosing to maintain their current bond-buying policy.

Fed officials held to the expectation that the U.S. economy will keep expanding in 2011, according to minutes released Tuesday of the March 15 meeting. They will continue buying $75 billion Treasury bonds each month as previously planned, but the minutes gave no hints that the Fed will extend the program after that.

The document reveals a mix of views among Fed officials on when to start pulling away the banks’ extreme efforts to support growth.

“A few participants indicated that economic conditions might warrant a move toward less-accommodative monetary policy this year; a few others noted that exceptional policy accommodation could be appropriate beyond 2011,” the minutes said.

Read more: http://www.washingtonpost.com/business/economy/fed_sees_steady_recovery_despite_turmoil_maintains_stimulus_effort_minutes_show/2011/04/05/AF93yxkC_story.html