Fed Plans To Stay The Course With Easing

Washington, DC, Jan. 5, 2011 -- The Federal Reserve isn't likely to adjust its $600 billion bond-buying plan, according to minutes from the last Federal Open Market Committee meeting Dec. 14.

Some members said they had a “fairly high threshold” for making changes to the program even as they saw signs that the economy was on the mend.

The Fed maintained its plan to purchase the $600 billion in bonds through the end of June.

The central bankers also said that the deal between President Barack Obama and Congressional Republicans to extend the 2001 and 2003 tax cuts was a positive for the outlook.

They said the tax-cut deal would boost the level of GDP in 2011 and 2012 but did not change the forecast for only a slow decline in the unemployment rate.

Some members said they had a “fairly high threshold” for making changes to the program even as they saw signs that the economy was on the mend at their Dec. 14 meeting.

The Fed maintained it plan to purchase the $600 billion in bonds through the end of June.

The central bankers also said that the deal between President Barack Obama and Congressional Republicans to extend the 2001 and 2003 tax cuts was a positive for the outlook.

They said the tax-cut deal would boost the level of GDP in 2011 and 2012 but did not change the forecast for only a slow decline in the unemployment rate.