Transcripts show Fed divided in 2012 over bond purchases

WASHINGTON (AP) - Newly released transcripts show sharp divisions inside the Federal Reserve in 2012 over the need for a third round of bond purchases to boost a lagging economy.

The doubters expressed fears that the risks outweighed what they believed would be small benefits. Even then-Fed Chairman Ben Bernanke, who was pushing for the move, conceded that whatever action the Fed took was "going to be a shot in the proverbial dark."

After extensive debate over two days, the central bank ended up supporting Bernanke by voting to launch the new effort to bolster the economy by buying $40 billion monthly in mortgage-backed securities to push long-term borrowing costs down.

The discussion was revealed in full transcripts of the Fed's eight meetings in 2012, released Friday after the customary five-year delay.