Action to be taken soon if economic recovery not strengthen - Federal Reserve

 WASHINGTON, Oct 12 (KUNA) -- The Federal Reserve said here Tuesday that that the pace of the economic expansion "slowed" in recent months and that inflation "remained low." The minutes of the Federal Open Market Committees last meeting, which was held on September 21, indicated that several members of the Committee noted that "unless the pace of economic recovery strengthened or underlying inflation moved back toward a level consistent with the Committee's mandate, they would consider it appropriate to take action soon." The minutes noted that the participants in the meeting discussed several possible approaches to providing additional accommodation but focused primarily on "further purchases of longer-term Treasury securities and on possible steps to affect inflation expectations." According to the minutes, nearly all members agreed that the statement should reiterate the expectation that economic conditions were likely to warrant exceptionally low levels of the federal funds rate for an extended period.
It added that members generally thought that the statement should note that the Committee was prepared to provide additional accommodation if needed to support the economic recovery and to return inflation, over time, to levels consistent with its mandate.
"Such an indication accorded with the members' sense that such accommodation may be appropriate before long, but also made clear that any decisions would depend upon future information about the economic situation and outlook," it noted.
"Many participants noted that if economic growth remained too slow to make satisfactory progress toward reducing the unemployment rate or if inflation continued to come in below levels consistent with the FOMC's dual mandate, it would be appropriate to provide additional monetary policy accommodation," the FOMC said in the minutes. (end) si.bs KUNA 122226 Oct 10NNNN