Can Fed Hawks Win in 2013?
NEW YORK ( TheStreet) -- Maybe the hawks will snatch their target in 2013.
Minutes from the latest meeting of the Federal Open Market Committee -- the Federal Reserve's policy-making wing -- revealed that members were mixed about how long the central bank's longer-term Treasury bond and mortgage-backed securities purchases should last.
A few members, the minutes said, felt that the monetary stimulus should remain in effect until the end of 2013, "a few others" reiterated a commitment to considerable accommodation, while "several others" felt that the Fed should slow or stop the programs well before the end of the year.
As economic indicators in housing, manufacturing, the labor force, retail and other areas show signs of strong to steady improvement, the hawks who are calling for an end to open-ended purchasing programs by the central bank may finally have the data to back up their calls."My own take is that we will see enough of an improvement in the labor market by the latter part of this year for them probably to stop the asset purchases," said Josh Feinman, global chief economist at DB Advisors. "It's
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