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Fri Feb 22, 2013, 10:24 AM

Fed unlikely to curtail stimulus despite rising doubts

Source: Reuters

(Reuters) - U.S. Federal Reserve officials are likely to press on with their bond-buying stimulus program even though some harbour growing concerns the purchases could fuel an asset bubble or inflation if pushed too far.

A full-throated debate among U.S. central bankers over the wisdom of ongoing quantitative easing, or QE, sent U.S. stock prices down sharply when minutes of the meeting were released on Wednesday.

Investors were right to assume the Fed is treading more carefully as it weighs the risks of its effort to spur a faster economic recovery, but that does not mean policymakers will conclude the costs outweigh the benefits.

Indeed, the officials who have voiced the greatest angst over the central bank's course do not currently have a vote on the policy-setting panel and the Fed's two most influential officials - Chairman Ben Bernanke and Vice Chairman Janet Yellen - are seen as committed to the bond-buying plan.

Read more: http://uk.reuters.com/article/2013/02/22/uk-usa-fed-bonds-idUKBRE91L07820130222

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Reply Fed unlikely to curtail stimulus despite rising doubts (Original post)
dipsydoodle Feb 2013 OP
Autumn Feb 2013 #1
dipsydoodle Feb 2013 #3
nineteen50 Feb 2013 #2

Response to dipsydoodle (Original post)

Fri Feb 22, 2013, 10:36 AM

1. I can't seem to get the article to load. Who does this benefit, the banks or the people?

I'm going to try to load it later, maybe the big white box will go away.

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Response to Autumn (Reply #1)

Fri Feb 22, 2013, 12:03 PM

3. I was out when you responded

but I used the link just fine on the mobile. If you go into http://uk.reuters.com/ you'll find it anyway.

Its not so much who it benefits but the risk to the public appears to be that of higher inflation.

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Response to dipsydoodle (Original post)

Fri Feb 22, 2013, 11:16 AM

2. Who owns the majority

Social Security 19.5% and don't forget pension funds state and cities. If their is truly a bubble and it breaks they will be the ones holding the biggest empty bag. There are numerous means of breaking S.S. Front door cuts and back door bond failure are just two.

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