BofA Merrill Lynch Global Research – A US Economics Report – Wednesday, 14 November 2012 – US Economic Watch
Debate continues in October FOMC minutes
As expected, Fed officials vigorously debated the merits of several policy actions at the October 23-24 FOMC meeting, but reached few conclusions. “A number” of Fed officials supported additional asset purchases in 2013 after Operation Twist concludes at year’s end. We expect that to be announced at the December 12-13 FOMC meeting. There also was broad agreement to consider modifications to the forward guidance language, but less agreement on what to do. Support for a consensus forecast seems to be fading, suggesting that ways to enhance the Summary of Economic Projections (SEP) will remain an active topic of debate.
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