Fed: QE3 still on the cards

Minutes of last month's meeting of the Federal Reserve's open market committee have raised the prospect of a third round of quantitative easing to boost the US's sluggish recovery.

The minutes show the odds are still in favour of another round of stimulus, with a number of the committee members saying large-scale asset purchases will stimulate growth. However, divisions remain among senior officials as a number of members believe the launch of QE3 will result in soaring inflation. "A number of participants saw large-scale asset purchases as potentially a more potent tool that should be retained as an option in the event that further policy action to support a stronger economic recovery was warranted," said the minutes. "Some judged that large-scale asset purc...