Fed Officials Saw Waning Gains From Bond Buying, Minutes Show

Federal Reserve officials saw declining economic gains from the central bank’s asset purchases and voiced concern about future risks to financial stability during their last meeting, when they started tapering bond buying.

“A majority of participants judged that the marginal efficacy of purchases was likely declining as purchases continue,” the record of the Federal Open Market Committee’s Dec. 17-18 meeting showed. Participants also were “concerned about the marginal cost of additional asset purchases arising from risks to financial stability,” citing the potential for “excessive risk-taking in the financial sector.”