Fed Divided: Minutes Reveal Rare Rift on Bond Purchases
Photo by Samuel Corum/Getty Images
7 Jul 2021
A rare rift among Federal Reserve officials came to light in the minutes of the central bank’s June meeting that were released Wednesday.
Fed officials agreed that it is important that the central bank “be well positioned to reduce the pace of asset purchases” if high inflation proves less transitory than forecast or the labor market recovers more quickly than expected.
But they do not agree on how to go about reducing those asset purchases.
The minutes show that several Fed officials think it would be a good idea for the Fed to scale down the purchases of mortgage-backed securities more quickly than the purchases of Treasuries in light of the extreme gains in housing prices seen over the past year.
Fed Officials Discuss Timing of Reducing Bond Purchases
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Fed officials discuss timing of reducing bond purchases
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Fed officials discuss timing of reducing bond purchases
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