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Federal Reserve officials are worried that inflation may stay low "for quite some time" despite the central bank's multitrillion-dollar efforts to jump start the economy, according to minutes from the October meeting released Wednesday. Open Market Committee members also discussed just how they should go about raising interest rates as monetary policy normalizes, and expressed some worry over market volatility during the process. "Participants anticipated that inflation would be held down over the near term by the decline in energy prices and other factors, but would move toward the Committee's 2 percent goal in coming years, although a few expressed concern that inflation might persist below the Committee's objective for quite some time," the minutes said.
The Fed at its October meeting voted to end its monthly bond-buying program known as quantitative easing. The lone dissenter was Minneapolis Fed President Narayana Kocherlakota, a dovish member who wanted QE to continue until inflation is higher.
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