Fed minutes show support for QE

The release of the minutes of the US Federal Reserve Open Market Committee (FOMC) on 21 September show a widespread support for a round of quantitative easing (QE).

However, support is not universal as Thomas Hoenig, president of the Federal Reserve Bank of Kansas, said yesterday QE would not help drive economic recovery, according to the Telegraph. "There is simply no evidence the additional liquidity would be particularly effective in spurring new investment, accelerating consumption, or cushioning or accelerating the deleveraging that is hopefully winding down," Hoenig said. The FOMC minutes show fears the faltering economy could lose more momentum without QE, as concerns over muted inflation, high unemployment and slowing business investment ...