WASHINGTON (MarketWatch) -- A significantly worsening economic outlook forced the Federal Reserve's hand in mid-March, leading the Federal Open Market Committee to commit to buy up to $1.25 trillion in long-term assets to goose the economy and prevent a slide into deflation, according to minutes of the March 17-18 meeting released Wednesday.
The summary of the meeting indicates little debate among the FOMC members on the question of buying longer-term Treasurys, with the major disagreement coming over how much to buy. Read the minutes.
All members of the committee agreed that "substantial additional purchases of longer-term assets ... would be appropriate," the minutes said. "Members agree that the monetary base was likely to grow significantly."