Stocks Plunge as Fed Members Admit Endless Bond Buying Will Not Fix Economy
February 21, 2013
Word of dissension at the Fed sent the stock market tumbling Thursday. Photo: Alex Proimos.
During the January meeting of the Federal Reserve, some members of the central bank admitted the obvious – a tidal wave of nearly worthless paper money will not turn the economy around and the Fed’s bond-buying program will create dangerous inflation and “foster market behavior that could undermine financial stability.”
Fed minutes reveal “a number of participants” in disagreement with the bond-buying scheme. An ongoing review of the practice “might well lead the committee to taper or end its purchases before it judged that a substantial improvement in the outlook for the labour market had occurred.”