Fed Meeting Minutes Show Mixed Sentiment

The Federal Reserve is cutting back on asset purchases, but there are mixed feelings within its ranks.

Jan 8, 2014 at 4:35PM

The Federal Open Market Committee today released the minutes from its Dec. 17-18 meeting, and the text shows its members offering mixed thoughts on what steps the Fed should take .

Investors and analysts have been eagerly awaiting this release, since it provides a more detailed explanation of the committee's decision last month to cut back slightly on purchases of mortgage-backed and Treasury securities. As of this month, the Fed will make $75 billion in purchases, rather than the previous $85 billion buy.

The minutes note that "most participants" viewed the buyback program's benefits as outweighing its costs and saw no reason to end the purchases "now or relatively soon." However, "a few" participants disagreed, suggesting that the program should end soon, regardless of whether the Fed's macroeconomic goals have been achieved.

The most talked-about threshold continues to be the national unemployment rate, at 7% as of November 2013. The Federal Reserve has consistently maintained that it will continue quantitative easing at least until unemployment dips to 6.5% Most committee members agreed to maintain this threshold, as well as the longer-run 2.5% inflation threshold, so as to remain consistent while providing "qualitative guidance regarding the Committee's likely behavior" after either of these points is reached. The Fed noted that total U.S. consumer price inflation, as measured by the PCE price index, was less than 1% over the 12 months ending in October. Said the Fed: "Inflation continued to run noticeably below the Committee's longer-run objective of 2 percent, but participants anticipated that it would move back toward 2 percent over time as the economic recovery strengthened and longer-run inflation expectations remained steady."

link

You can follow Justin Loiseau on Twitter, @TMFJLo, and on Motley Fool CAPS, @TMFJLoTry any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Money to your ears - A great FREE investing resource for you

The best way to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as “binge-worthy finance.”

Feb 1, 2016 at 5:03PM

Whether we're in the midst of earnings season or riding out the market's lulls, you want to know the best strategies for your money.

And you'll want to go beyond the hype of screaming TV personalities, fear-mongering ads, and "analysis" from people who might have your email address ... but no track record of success.

In short, you want a voice of reason you can count on.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich," rated The Motley Fool as the #1 place online to get smarter about investing.

And one of the easiest, most enjoyable, most valuable ways to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as "binge-worthy finance."

Whether you make it part of your daily commute or you save up and listen to a handful of episodes for your 50-mile bike rides or long soaks in a bubble bath (or both!), the podcasts make sense of your money.

And unlike so many who want to make the subjects of personal finance and investing complicated and scary, our podcasts are clear, insightful, and (yes, it's true) fun.

Our free suite of podcasts

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. The show is also heard weekly on dozens of radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable. Rule Breaker Investing and Answers are timeless, so it's worth going back to and listening from the very start; the other three are focused more on today's events, so listen to the most recent first.

All are available for free at www.fool.com/podcasts.

If you're looking for a friendly voice ... with great advice on how to make the most of your money ... from a business with a lengthy track record of success ... in clear, compelling language ... I encourage you to give a listen to our free podcasts.

Head to www.fool.com/podcasts, give them a spin, and you can subscribe there (at iTunes, Stitcher, or our other partners) if you want to receive them regularly.

It's money to your ears.

 


Compare Brokers