U.S. News: Fed Holds Fire on Stimulus
The Fed is in no hurry to launch new measures to boost economic growth, minutes from the central bank's most recent meeting showed, disappointing investors eager for more stimulus.</br></br>Among the hints dropped in minutes of the Fed's March 13 policy gathering, Federal Reserve staff concluded that the U.S. economy is a little more susceptible to inflation than previously thought. That and other signals suggested that another round of bond buying by the Fed to push down long-term interest rates isn't imminent.</br></br>The news disappointed financial markets. The Dow Jones Industrial Average fell by as much as 1% before recovering slightly to finish down 64.94 points at 13199.55. Treasurys also fell, sending yields higher.</br></br>The minutes, released Tuesday afternoon, with the customary three-week lag following the meeting, noted that "a couple" of officials said additional stimulus could become necessary if the economy lost momentum or inflation receded.</br></br>But that sounded a bit more timid than a January meeting, when the Fed said "a few" officials thought bond buying could be needed "before long."