By Peter Schroeder - 01/16/11 07:20 PM EST
Federal Reserve officials said Friday the central bank still needs to take steps to boost the domestic economy even if it appears to be growing at the outset.
Boston Federal Reserve Bank President Eric Rosengren said the Fed's efforts to boost the economy cannot wane until the recovery is broader and more well-established. In addition, further steps from the Fed may be needed if the housing sector continues to impede the recovery.
"There will be a time when these aggressive actions need to be reversed, but first we need to get the economy on a much more solid footing," said Rosengren, according to Reuters.
The Fed has come under fire recently for its decision to buy $600 billion of Treasury bonds in a "quantitative easing" effort. Fed officials maintain the buybacks will help boost private lending, but critics, including several in the Republican Party, argue it will cause inflation.
Federal Reserve Governor Daniel Tarullo told CNBC that he saw no reason to alter the $600 billion purchase program, which is scheduled for completion at the end of July.