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Fed Should Go Slow and Steady With Economy

Some officials at the Federal Reserve seem to believe that the adage that it's possible to have too much of a good thing even applies to an economic stimulus.

Some officials at the Federal Reserve seem to believe that the adage that it's possible to have too much of a good thing even applies to an economic stimulus.An article from Reuters says two senior officials at the agency warned that Federal Reserve should be careful not to over-stimulate the economy and stay focused on an exit from its aggressive monetary expansion as growth resumes.

According to Reuters, St. Louis Federal Reserve Bank president James Bullard said the central bank would need to think about scaling back its economic support in the months ahead, while Richmond Fed chief Jeffrey Lacker said it should weigh whether to carry through with all of its current stimulus plans.

Bullard suggested the Fed shrink its balance sheet by selling assets it purchased this year to counter the recession, versus raising interesting rates.

For the entire article from Reuters, see "Fed officials say must not ignore exit policy."

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