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FOMC Minutes: Some wanted a quicker pace of tapering

  • The majority of participants noted the marginal efficacy of QE was declining over time, and a few wanted a larger-than-announced taper in December. However, those concerned about a potential unintended tightening of financial conditions won out and the FOMC ultimately decided to proceed cautiously with the QE exit.
  • A few suggested lowering the unemployment rate threshold to 6% from 6.5% to convey the Fed's intention to continuing sticking with ZIRP, but the FOMC decided instead to provide qualitative guidance on how it might react to a range of labor market indicators.
  • Full report
Comments (2)
  • yliu54
    , contributor
    Comments (170) | Send Message
     
    I really hate the term "qualitative guidance".
    8 Jan, 02:13 PM Reply Like
  • Economic Analyst
    , contributor
    Comments (2369) | Send Message
     
    "The staff did not see the uncertainty around its outlook for inflation as unusually high,..."

     

    Understatement of the day.
    8 Jan, 11:26 PM Reply Like
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