Fed Members Divided On Tapering Plans, Minutes Reveal

(RTTNews) - Some members of the Federal Reserve questioned whether to taper the central bank's massive bond-buying plan amid signs the economic recovery has stalled, minutes from its January policy meeting revealed Wednesday. At that two-day meeting ending January 29, the last under the leadership of Chairman Ben Bernanke, the U.S. central bank went ahead with trimming its monthly bond-buying program.

The Fed has cut its asset purchases by $10 billion at each of the last two meetings.

New Chairman Janet Yellen has told Congress she plans to continue current monetary policy, with tapering to remain on pace despite harsh winter weather that may have further hindered economic growth.

Although January's vote to taper was unanimous, their was considerable disagreement among participants about tightening monetary policy.

A number of hawkish members argued that the economy is in good enough shape to handle a hike in short-term interest rates, while committee doves were worried that it may be too soon to withdraw support measures given the winter lull.

Earlier today, Atlanta Fed President Dennis Lockhart reiterated his prediction that the central bank will first hike short-term interest rates in the second half of 2015.