Many economists back Fed's bond-buying program, poll finds

WASHINGTON – Most business economists believe the Federal Reserve's controversial bond-buying stimulus program has helped boost the recovery, but differ on the effects of the health care reform law and other policies by President Obama and Congress, according to survey results released Monday.

Nearly 70 percent of respondents in the semi-annual survey of the National Association of Business Economics (NABE) said the Fed's program, known as quantitative easing, has been a success.

A majority — 57 percent — described the central bank's monetary policy as "about right," while 37 percent said it was "too stimulative."

There was less agreement on policy moves from the White House and Capitol Hill.

About 39 percent of respondents said fiscal policy, which has included tax increases and automatic federal spending cuts, was "too restrictive," while 21 percent thought it was "too stimulative." Almost four in 10 — 37 percent — described it as "about right."

There was also disagreement on the effects of the Affordable Care Act, with 42 percent saying they thought it would have no significant effect on economic growth. Three in 10 respondents said it would reduce growth, while 18 percent said it would boost economic activity.

The Congressional Budget Office recently said the health care reform law would cause some people to work less, reducing employment by the equivalent of 2 million full-time jobs in the next decade.

The Fed began its third round of bond-buying in September 2012, when the unemployment rate was 8.1 percent. The rate in January was 6.6 percent.

With the unemployment rate dropping, Fed policymakers began tapering the $85 billion in monthly purchases, reducing them by $10 billion in December and again in January.