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Members of Fed advisory panel express concerns

Martin Crutsinger, AP Economics Writer

WASHINGTON (AP) -- Some members of a Federal Reserve banking advisory committee expressed concerns this month that the Fed's low interest-rate policies could be creating an "unsustainable bubble" in stock and bond markets.

The discussion among members of the banking advisory group and officials at the Federal Reserve showed the advisory panel believed that the Fed's policies has provided support for a slow economic recovery. But some advisory members worry that the policies may also lead to higher inflation or market instability.

The advisory group is made up of private bankers from each of the Fed's 12 banking districts. They normally meet four times a year with the Fed's seven-member board of governors in Washington to offer their views on various topics.

The record of the May 17 discussion was published Friday on the Fed's website. Under new procedures, the Fed will make the advisory committee records public two weeks after each quarterly meeting.

The Fed made that decision after some news organizations filed Freedom of Information Act requests to obtain records of the meetings.