Salient to Investors:
A majority of FOMC participants in December judged that the marginal efficacy of purchases was likely declining as purchases continue and worried about the marginal cost of additional asset purchases arising from risks to financial stability, citing the potential for excessive risk-taking in the financial sector.
Michael Feroli at JPMorgan Chase said many believe asset purchases have had declining benefits over time, and this is the first time I believe the committee as a whole has really come out and agreed. Feroli said the economy seems able to stand more on its own now.
The average 30-yr fixed-rate mortgage rose to 4.53 percent last week.
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