Growth, inflation outlook seen as unsatisfactory
There was a general sense among many Federal Reserve officials that additional monetary-policy easing may be appropriate “before long,” according to a summary released Tuesday of the Sept. 21 discussions.
Members of the rate-setting Federal Open Market Committee viewed recent growth and inflation trends as unsatisfactory.
“Several members noted that unless the pace of economic recovery strengthened or underlying inflation moved back toward a level consistent with the FOMC’s mandate, they would consider it appropriate to take action soon,” the summary said. The release of the minutes helped the S&P 500 Index (SPX 1,172, +6.63, +0.57%) turn higher on the session. Read more about the day’s trading action in Market Snapshot.
“it is clear that the focus of discussion at the FOMC is on what further measures may be implemented to support the economy, and that those arguing that a ‘do-nothing’ approach is the best strategy are increasingly in the minority,” wrote Josh Shapiro, chief U.S. economist at MFR Inc., in a note.
Shapiro thinks a gradual easing is more likely in November as a more aggressive approach might find more opposition....MORE