The Federal Reserve remains divided on the prospects for a third round of quantitative easing, according to the minutes of the most recent Federal Open Market Committee meeting.
At the conclusion of its April 24-25 meeting, the Fed promised to keep interest rates low at least through late 2014, but offered no further accommodation in support of the sluggish economy.
After unprecedented support measures taken during the worst of the recession, the Fed has adopted a wait-and-see stance over the past year.
"Several" voting members are in favor of additional asset purchases if the economic recovery falters, up from language in the previous months indicating "a few" potential advocates for QE3.
However, only one member sees the need for the Fed to crank up the printing presses at this time.
Furthermore, the minutes showed a rising number of Fed members expect that tightening measures will be appropriate before late 2014.
Other than the Fed's customary warning about downside risks related to Europe, there was no mention of the latest developments in Greece, where voters elected a slew of left-leaning politicians in an effort to sabotage austerity measures.
The Fed said the U.S. economic activity was expanding moderately in the period between their March and April meetings, bolstered by a rise in payrolls and gains in manufacturing.
Inflation remains in check, policy makers said. Only Richmond Fed President Jeffrey Lacker felt that potential inflationary pressures warrant the Fed changing its outlook for ultra-low interest rates to the middle of next year instead of late 2014.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.