US market hit by Fed doubts on open-ended QE3

US markets fell yesterday after minutes from the latest FOMC meeting revealed concern over the impact of further QE, while disappointing housing data also hit shares.

According to the minutes of the Federal Open Market Committee's January meeting, many officials are concerned about the risks of further asset purchases, as the Fed buys securities at around $85bn a month, the Financial Times reports. This suggests QE3 could end earlier than previously thought and may no longer be considered an open-ended programme. Several participants at the January meeting "emphasized that the committee should be prepared to vary the pace of asset purchases, either in response to changes in the economic outlook or as its evaluation of the efficacy and costs of such...