BUSINESS

Fed minutes show extensive discussion at January meeting over risks from Fed's bond purchases

02/20/2013 02:02 EST | Updated 04/22/2013 05:12 EDT
WASHINGTON - Several Federal Reserve policymakers were concerned last month about the risks of the Fed's efforts to boost the U.S. economy by keeping borrowing costs low for the foreseeable future.

Minutes of the Fed's Jan. 29-30 policy meeting showed that some officials worried about the Fed's monthly purchases of $85 billion a month in Treasurys and mortgage bonds. They expressed concern that the continued purchases could eventually escalate inflation, unsettle financial markets or cause the Fed to absorb losses once it begins selling its investment holdings.

In the end, the Fed voted last month to keep its bond program open-ended and at the same size. The Fed said in a statement that the bond purchases would continue until the job market improved substantially.