Federal Reserve officials have expressed concerns that near-zero interest rates could fuel “excessive risk-taking in financial markets” but believe the possibility is “relatively low,” according to minutes from the Fed’s November meeting. China and Germany warned this month that the weak dollar and the Fed’s policy to keep US interest rates “exceptionally low” for an “extended period” could lead to a new speculative bubble. The minutes show that the policy-setting FOMC already had discussed this risk.

This entry was posted by Gwen Robinson on Wednesday, November 25th, 2009 at 4:44 and is filed under Capital markets. Tagged with federal reserve. Edit this entry.