Inflation worries dominated Fed’s last meeting
WASHINGTON (NYTIMES) - Worries about inflation dominated the Federal Reserve's November policy meeting, with some policymakers suggesting that the United States central bank should move more quickly to reduce its bond-buying programme in order to give it flexibility to raise interest rates sooner if necessary. The Fed has been buying US$120 billion (S$164 billion) in bonds each month and has kept interest rates near zero, policy moves that have helped make borrowing cheap and keep money flowing through the economy. This month, the Fed took the first step towards withdrawing support for the economy when it announced that it would begin scaling back its Treasury bond and mortgage-backed security purchases by US$15 billion a month starting in November. "Some participants suggested that reducing the pace of net asset purchases by more than US$15 billion each month could be warranted so that the committee would be in a better position to make adjustments to the target range for the federal funds rate, particularly in the light of inflation pressures," minutes from the meeting showed, referring to the Federal Open Market Committee, which sets interest rates. Those comments reflected unce...
