Fed Considered Slowing Pace of Bond Purchases
Several Federal Reserve policymakers this month favored slowing the Fed's efforts to maintain record-low long-term interest rates as early as summer -- if the economy showed strong and sustained growth. But those officials appeared at odds over what evidence would demonstrate such gains.
Minutes of the Fed's April 30-May 1 meeting released Wednesday show "a number" of members expressed a willingness to scale back the $85 billion a month in Treasury and mortgage bonds the Fed has been purchasing, perhaps as soon as June, if the economy accelerates. The Fed next meets on June 18-19.
Still, Chairman Ben Bernanke, the Fed's most important voice, signaled Wednesday in testimony to Congress that it is too soon for the Federal Reserve to slow its extraordinary stimulus programs.
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