The latest Federal Open Market Committee meeting minutes suggest that employment concerns were what led the Fed last month to continue Treasury purchases aimed at stimulating the economy through lower rates despite some positive economic developments at the time.
Michael Gapen, director, U.S. economic research, at Barclays Capital, noted in an interview that there was a bit more prominence placed on unemployment in the minutes. The majority of FOMC members may think there is more risk to the downside, but the minutes also do note that, “A few mentioned the possibility that growth could pick up more rapidly than expected.”
The minutes show upward revision of gross domestic product projections over the near term, with the fiscal package some credited with contributing to a rate spike last month perhaps contributing, but existing GDP projections remained largely in place for the medium term, Gapen also noted.
