Wednesday, April 04, 2012

Fed tones down talk of more stimulus

Fed tones down talk of more stimulus
ReutersReuters – 2 hours 1 minute ago
By Pedro da Costa and Mark Felsenthal

WASHINGTON (Reuters) - Federal Reserve policymakers appear less inclined to launch a fresh round of monetary stimulus as the U.S. economy gradually improves, according to minutes for the central bank's March meeting.

Economic growth has strengthened slightly, Fed officials noted, but they remained cautious about a broad pick up in U.S. activity, focusing heavily on a still elevated jobless rate.

Despite this caution, only "a couple" of members thought additional monetary stimulus might be needed to support the economy if it loses momentum or inflation remains too low for too long.

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