Fed officials 'considering altering bond-purchasing programme'

21 February 2013

Several US policymakers believe the Federal Reserve (Fed) may need to reduce its bond-buying programme in the near future, it has emerged.

The minutes of the Fed's latest policy meeting - which took place on 29 and 30 January - revealed there is growing concern among officials over the effectiveness of its plan to boost the country's employment market.

Last month, governor Ben Bernanke and his fellow policymakers opted to introduce a scheme whereby the central institution will keep purchasing bonds at a monthly rate of $85 billion to help the outlook of the nation's labour market.

However, this policy has not yet had the desired impact on employment, which has led to officials considering the possibility of cutting its budget or stopping it altogether until it has overseen a "substantial improvement".

"Several others argued that the potential costs of reducing or ending asset purchases too soon were also significant," the minutes added.

By Asim Shah

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