So, the Federal Reserve’s Open Market Committee’s minutes have been released, and there were concerns that abnormally low interest rates might fuel speculative excesses?

Really? How could could anyone conclude that after all the prosperity that Alan “Bubbles” Greenspan droping rates to unprecedented lows, and then keeping them there in order to keep George W. Bush in office deal with the hangover from the dotcom crash?

Yes, of course it’s a worry:

Federal Reserve officials said record-low interest rates might fuel “excessive” speculation in financial markets and possibly dislodge expectations for low inflation, according to minutes of their meeting released today.

“Members noted the possibility that some negative side effects might result from the maintenance of very low short-term interest rates for an extended period,” minutes of the Nov. 3-4 meeting said, “including the possibility that such a policy stance could lead to excessive risk-taking in financial markets or an unanchoring of inflation expectations.”

While policy makers agreed that the chances of such effects were “relatively low, they would remain alert to these risks,” the minutes showed. Fed officials at their meeting indicated the benchmark lending rate would remain near zero “for an extended period” as long as inflation expectations are stable and unemployment fails to decline.

But it appears that “fed officials” are going to use some more of their “Federal Reserve Fairy Dust”, to prevent this, or at least make sure that the chances of such effects are, “relatively low.”

Audit the Fed, then reform it.