The Federal Reserve felt that the fiscal cliff drama had an adverse impact on the economy late in 2012, according to the minutes of the central bank's most recent policy making meeting.

Minutes from the December meeting showed that voting members were concerned about the Fed's ballooning balance sheet. However, the Fed continued to believe that its asset purchase plan would need to remain in place to see the U.S. economy through a potential rough patch.

Some members of the rate-setting Federal Open Market Committee thought asset buying would be warranted though most of 2013.

The Fed offered a mixed assessment of the sluggish economic recovery, noting some improvement in employment and the housing market.

"The information reviewed at the December 11-12 meeting indicated that economic activity continued to increase at a moderate pace in recent months. Employment expanded further, and the unemployment rate declined slightly, on balance, from September to November but was still elevated," the minutes said.

2013-1-4 23:14