Minutes: Fed Could Expand Bond-Buying Program

The United States Federal Reserve Board and the Federal Open Market Committee (FOMC) on Wednesday released the minutes of the committee meeting held on November 4-5.

Policymakers have discussed in their most recent meeting potential adjustments to the asset purchase program, as shown by the minutes released on Wednesday.

The Federal Reserve reiterated its commitment to using its full range of tools to support the U.S. economy in this challenging time, thereby promoting its maximum employment and price stability goals.

“Participants noted that the Committee could provide more accommodation, if appropriate, by increasing the pace of purchases or by shifting its Treasury purchases to those with a longer maturity without increasing the size of its purchases.”

“Alternatively, the Committee could provide more accommodation, if appropriate, by conducting purchases of the same pace and composition over a longer horizon.”

“Over coming months the Federal Reserve will increase its holdings of Treasury securities and agency mortgage-backed securities at least at the current pace to sustain smooth market functioning and help foster accommodative financial conditions, thereby supporting the flow of credit to households and businesses.”