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Fed: Uncertainty Major Headwind for Economy

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  • Description

    FBN’s Peter Barnes on the Federal Reserve’s latest FOMC minutes.

  • Duration 1:55
  • Date

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This transcript is automatically generated

Fed minutes we should be existing data.

That's right actually the Fed continued to see moderate economic growth for this year four -- -- last policy meeting in mid December here -- the minutes for that meeting.

But that outlook was not strong enough for the Fed to say no to another round of quantitative easing as you -- call.

A fourth round 45 billion dollars a month of new bond purchases.

To help keep interest rates low and push them even lower and the Fed said at that meeting it would not start easing up.

On stimulus until the unemployment rate gets to at least six and a half percent.

The minutes say quote many participants thought that the pace of economic expansion would remain moderate.

And 2013 before picking up gradually and 2014 -- 2015.

Fed members debated the fiscal clips saying quote a major headwind facing the economy at -- appear to be the uncertainty about US fiscal policy and the outcome of the ongoing negotiations on federal spending and taxes heightened uncertainty about fiscal policy probably was affecting economic activity adversely.

A number of participants -- suggested that the business sector was well positioned to expand spending.

And hiring quickly.

Upon a positive resolution to the fiscal -- negotiations but of course.

We know that congress and the president only -- part of the fiscal cliff the Lama the tax part this week and still last attack public spending and debt part now.

Here's another interesting nugget from the -- said they say quote in a few regions contacts reported concerns about.

The expense associated with a new regulations.

Including those related to health care.

And in some cases indicated a shift to the hiring of part time workers in order to avoid those costs so.

Will that affect the imply you know full time employment the unemployment rate well yeah we'll see as Health Care Reform unfolds this year.

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