Fed Lays Groundwork for Further Steps

Policy makers could decide to lengthen maturity of Fed portfolio at September meeting.

Federal Reserve policy makers are laying the groundwork for further action at this month’s meeting, warning that U.S. economic growth could stall, producing lasting stagnation in the job market.

Federal Reserve Bank of Chicago President Charles Evans said the Fed should consider adding “very significant amounts of policy accommodation” and attacked the notion that it should abide by a 2 percent ceiling on inflation. San Francisco Fed President John Williams cited “a number of steps” that could be taken to support growth, without offering specifics.

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