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News Summary: Fed officials divided on timing

Published on NewsOK Modified: January 3, 2013 at 6:25 pm •  Published: January 3, 2013

FED MINUTES: Minutes of the Federal Reserve's Dec. 11-12 meeting indicates that the central bank plans to keep buying bonds to lower long-term interest rates and give the economy a boost. However, the minutes showed there are differences of opinion over how long the bond purchases should continue.

THREE GROUPS: The minutes split the Fed policy-makers into three groups. One group wants to keep buying bonds until around the end of 2013. Another group said it might be appropriate to slow or stop the purchases well before the end of the year. The minutes said a third group supported the purchases without linking them to a specific timeframe.

OUTLOOK: The news of a split on the Fed ended a two-day rally on Wall Street but many private economists still think the Fed will keep buying bonds into 2014.