Fed Says Easier Policy May Be Needed "Before Long"

Reuters
October 12, 2010

U.S. Federal Reserve officials felt the struggling economy might soon need more help when they met in September, and discussed several ways to provide support, including the possible adoption of a price-level target.

The Fed officials who gathered on September 21 focused both on the possibility of buying more longer-term U.S. government debt to drive borrowing costs lower and ways to nudge the public into expecting higher levels of inflation in the future to spur spending now, the central bank said on Tuesday.

Policy-makers had a "sense that (more) accommodation may be appropriate before long," minutes of the meeting said.

The U.S. central bank's policy committee released its members' views as international debate intensified over how the Fed's easy monetary policy was driving down the dollar and in turn boosting the currencies of many emerging economies.

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