Hilsenrath Analysis: Fed Minutes May Show Amicable Taper Decision

http://blogs.wsj.com/economics/2014/01/08/hilsenrath-analysis-fed-minutes-may-show-amicable-taper-decision/?KEYWORDS=hilsenrath

Fed Chairman Ben Bernanke signaled at his post-meeting press conference that there was broad agreement about the action. When asked if the decision was a close call, Mr. Bernanke didn’t take the bait. Instead, he said “there was a pretty widespread view” that the Fed’s criteria for pulling back the program were on course to being met.
That isn’t to say there was no disagreement. Boston Fed President Eric Rosengren dissented, because he thought scaling back the program back was premature and some Fed “hawks” wanted to pull back the program more aggressively. But broadly many officials got what they wanted. Internal skeptics of the program got a roadmap for its eventual end, while supporters were assured it would be a gradual process that could be reversed if needed.
This is an important development for Fed Vice Chairwoman Janet Yellen, who will become Fed chairwoman Feb. 1, after Mr. Bernanke’s term ends. It ensures that the first few months of her term, at least, won’t be consumed with the difficult task of building consensus for action. That has already happened. Her first task will be carrying through with the plan, or altering it if the economy veers off the course the Fed expects.