Fed may need to taper, halt QE3 before jobs market heals -minutes - RTRS

At: 2/20 20:39:48

FED- A NUMBER OF FED POLICYMAKERS AT JAN. 29-30 FOMC SAID MAY NEED TO
TAPER OR HALT QE3 BEFORE SUBSTANTIAL LABOR MARKET IMPROVEMENT
OCCURS-MINUTES

FED- SEVERAL FED OFFICIALS ARGUED POTENTIAL COSTS OF REDUCING OR
ENDING ASSET PURCHASES TOO SOON ALSO SIGNIFICANT-MINUTES

FED- A NUMBER OF FED POLICYMAKERS DISCUSSED POSSIBILITY OF PROVIDING
MONETARY ACCOMMODATION BY HOLDING SECURITIES FOR LONGER

FED- MANY FED POLICYMAKERS EXPRESSED SOME CONCERNS ABOUT POTENTIAL
COSTS AND RISKS FROM FURTHER ASSET PURCHASES-MINUTES

FED- SAYS WILL REVIEW HOW IT COMMUNICATES LIKELY EFFICACY AND COSTS
OF ASSET PURCHASES AT MARCH FOMC MEETING

FED-MANY FED OFFICIALS EXPRESSED INTEREST IN EXPLORING USE OF FED
FORECASTS TO CONVEY INFORMATION ON ASSET BUYS, BALANCE SHEET

FED- ONE FED OFFICIAL VOICED PREFERENCE FOR LOWERING 6.5 PCT
THRESHOLD FOR JOBLESS RATE AS WAY TO PROVIDE MORE STIMULUS SEVERAL FED
-FED-POLICYMAKERS: VERY LARGE BOND HOLDINGS
EXPOSE FED TO SIGNIFICANT LOSSES WHEN UNWOUND, OTHERS SAW OFFSETING FACTORS

FED-SEVERAL OFFICIALS SAID FED SHOULD BE PREPARED TO VARY PACE OF
ASSET PURCHASES IN RESPONSE TO ECONOMIC OUTLOOK, POTENTIAL COSTS

FED-MANY FED OFFICIALS WORRY PROLONGED PERIOD OF SUB-PAR US GROWTH
COULD UNDERMINE ECONOMY'S LONG TERM POTENTIAL -MINUTES


Fed may need to taper, halt QE3 before jobs market heals -minutes - RTRS


20-Feb-2013 14:03

WASHINGTON, Feb 20 (Reuters) - The U.S. Federal Reserve may have to
slow or stop buying assets before seeing the pickup in hiring the bold
program is designed to deliver, due to concern over its possible
costs, minutes of the Fed's meeting last month showed on Wednesday.

"A number of participants stated that an ongoing evaluation of the
efficacy, costs, and risks of asset purchases might well lead the
committee to taper or end its purchases before it judged that a
substantial improvement in the outlook for the labor market had
occurred," the minutes said.

The Fed voted last month to maintain its third round of so-called
quantitative easing, or QE3, at a $85 billion monthly pace, while
committing to hold interest rates near zero until unemployment hits
6.5 percent, provided inflation does not risk rising above 2.5
percent.