Fed Meeting Minutes Show Increasing Likelihood That QE Program May End Sooner Than Expected Hot

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Stocks, oil, and gold markets all fell on the possibility that the Fed could end the program sooner than anticipated even as several Fed officials warned of the dangers of ending the program too early.
 
The meeting minutes indicated the Fed is willing to taper the purchases at some point in the future to gauge likely economic reaction instead of ending the program all at once.
 
The December meeting saw officials almost evenly divided over ending the program mid-2013 or by the end of the year.
 
At the January meeting, officials decided to continue the $85 billion worth of purchases without setting a time frame or total size limit.
 
Some officials said a cost-benefits analysis could cause the Fed to taper its purchases before it judged that the labor market had improved to its desired point.
 
Others argued that cutting the program too soon could also result in significant costs and danger to the economy.
 
The FOMC will conduct a review of the program at the March 19 – 20 meeting. It will also contemplate new ways to present its economic projections in public communications.

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