Some members of the Federal Reserve's rate setting board fear the central bank could be going to too far in support of the U.S. economy, the minutes of the most recent Fed meeting revealed Wednesday morning.
At the culmination of a two-day meeting ending March 20, the Fed decided to continue purchases of mortgage-backed securities at a pace of $40 billion per month and purchases of longer-term Treasury securities at a pace of $45 billion per month.
Members also voted to keep the Fed's benchmark interest rate near zero.
While most Federal Open Market Committee officials think it is too soon for the Fed to consider halting its massive bond buying program, some are concerned that such aggressive action risks inflation that will be difficult to contain once the economy is on more solid footing.
"A few members felt that the risks and costs of purchases, along with the improved outlook since last fall, would likely make a reduction in the pace of purchases appropriate around midyear, with purchases ending later this year," the minutes read.
"Several others thought that if the outlook for labor market conditions improved as anticipated, it would probably be appropriate to slow purchases later in the year and to stop them by year-end."
The Fed had previously signaled it would maintain its easing program until unemployment dropped below 6 percent and annual inflation rose above a 2 percent target.
By and large, the Fed members judged that the economic recovery continued to plod along in the first few months of 2012, and would have been more robust if not for fiscal restraint brought on by the government's budget impasse.
During that time, U.S. stocks rose sharply, with the Dow Jones Industrial Average approaching record highs that have since been surpassed.
However, policy makers noted downside risks to the broader economic recovery, including headwinds from Europe and the possibility of a more severe tightening in U.S. government spending than currently anticipated.
The minutes were slated to be released at 2 pm ET but were made public a few hours ahead of schedule at 9 am.
For comments and feedback contact: editorial@rttnews.com
Business News
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.