WASHINGTON (AP) — The Federal Reserve's decision to postpone any pullback in its economic stimulus immediately ignited a debate: Was the Fed right or wrong to delay the inevitable?
Investors had anticipated a small cut in the Fed's $85 billion in monthly bond purchases, which are intended to keep long-term borrowing rates low to encourage spending. A pullback would have signaled that the Fed felt the economy had shown steady improvement.
Was the Fed right to hold off? Here's the case for slowing the purchases — and the case against it.
— THE CASE FOR SLOWING BOND PURCHASES:
If not now, when? That's what many economists were asking.
