Back to top

Real Time Insight

According to minutes of the FOMC meeting held on January 29--30, 2013, several officials are worried about the costs and risks of the Fed’s bond purchases of $85 billion every month.

While they agreed that aggressive easing measures are intended to encourage risk-taking, many members expressed concern about the "potential for excessive risk-taking and adverse consequences for financial stability”.

Most participants agreed that the asset purchases had been effective in stimulating economic activity and easing financial conditions, but “several participants emphasized that the Committee should be prepared to vary the pace of asset purchases, either in response to changes in the economic outlook or as its evaluation of the efficacy and costs of such purchases evolved”.

In the end, the committee voted to continue its asset purchases at the current pace, with dissent from one member who expressed concern that the potential costs and risks posed by the massive asset purchases outweighed their uncertain benefits.

A review of the efficacy and costs of the asset purchases is planned for the FOMC meeting in March.

Fed’s balance sheet could exceed $4 trillion by the end of the year if the bond purchases continue at the current pace. However disagreement among the members suggests that QE may come to an end, earlier than previously expected.

Do you think that the Fed will slow-down or stop bond purchases this year?

Just Released: 5 Stocks to Double

Today, you are invited to download a free Special Report from Zacks Investment Research. It reveals five moves that could gain +100% and more in the next 12 months:

One is a "boring" business delivering blistering growth. Another is a red-hot oil and gas producer set to surge on a drilling breakthrough. Still another, an online payment provider, ignited a 53% sales explosion during the past year.

Close This Panel X

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
CENTURY ALU… CENX 22.53 +4.50%
ERBA DIAGNO… ERB 2.91 +4.30%
PLANAR SYST… PLNR 4.31 +3.86%
MALLINCKROD… MNK 72.17 +3.83%
GTT COMMUNI… GTT 12.06 +3.52%