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Quantitative easing not on cards at Fed meeting

The US Federal Reserve has stepped back from another round of quantitative easing with only two of 10 voting members saying that it "could become necessary", according to the minutes of its March meeting.

"A couple of members indicated that the initiation of additional stimulus could become necessary if the economy lost momentum," said the minutes.

That is in sharp contrast to January when a "few" members of the rate-setting Federal Open Market Committee thought that economic conditions "could warrant the initiation of additional securities purchases before long".

The wording suggests that the Fed is unlikely to launch a third round of quantitative easing, QE3, unless the economic outlook weakens.

Irish Independent