NY Times | At least some Fed officials uncomfortable with Bernanke’s QE

WASHINGTON — There are widening divisions among officials of the Federal Reserve over the value of its efforts to reduce unemployment, but the authors of its bond-buying policy remain firmly in control, according to an official account of the January meeting of the Fed’s policy-making committee.

An increasingly outspoken minority of Fed officials are concerned that monthly purchases of about $85 billion in Treasury securities and mortgage-backed securities are doing more harm than good. They argue the effort may need to end even before the nation’s unemployment rate drops, because it is encouraging excessive risk-taking and could make it harder to control inflation.

But the Federal Open Market Committee reiterated its determination in January to hold course until there was “substantial improvement” in the outlook for job growth, and several officials cautioned at the meeting that the greater risk to the economy was in stopping too soon, according to the account, which was published after a standard three-week delay.

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