US DATA: Nov 2-3 FOMC mins: Friendly as FOMC members bemoaned slow
growth and high unemployment but said there was a wide range of risks
(staff outlook was little chgd). On QE, “Most participants judged that a
program of purchasing additional longer-term securities would put
downward pressure on longer-term interest rates and boost asset prices;
some observed that it could also lead to a reduction in the foreign
exchange value of the dollar. Most expected these changes in financial
conditions to help promote a somewhat stronger recovery in output and
employment while also helping return inflation, over time, to levels
consistent with the Committee’s mandate. In addition, several
participants argued that the stimulus provided by additional securities
purchases would help protect against further disinflation and the small
probability that the U.S. economy could fall into persistent deflation.”
Some said it could have limited effect. Nearly all agreed ‘extended pd.’