The minutes revealed most members of the Federal Open Market Committee were concerned about slowing growth and the vulnerability of the economy to external threats, particularly economic instability in Europe.
“Many members judged that additional monetary accommodation would likely be warranted fairly soon unless incoming information pointed to a substantial and sustainable strengthening in the pace of the economic recovery,” the record of the July 31-August 1 FOMC meeting said.
“A number of members noted that if the recent modest rate of economic growth were to persist, the economy would be less able to weather a material adverse shock without slipping back into recession,” it added.
Fed members discussed the merits of different approaches to sparking more drive in the economy, from signalling that they would keep their benchmark interest rate at the current all-time low longer than currently understood, to undertaking more bond purchases aimed at pulling long-term interest rates down further.
CONTINUED at Yahoo News Canada.