Many Federal Reserve policy makers said additional stimulus would probably be needed soon unless the economy shows signs of a durable pickup, according to minutes of their most recent meeting.
“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,” according to the record of the Federal Open Market Committee’s July 31- Aug. 1 gathering released today in Washington.
Participants questioned whether the guidance was clear enough, and “a few” suggested that the committee replace the date with changes in the economy that would prompt policy makers to raise the fed funds rate, or cut guidance language entirely, the minutes show.
Dallas Fed President Richard Fisher, who doesn’t vote on policy this year, said on Aug. 8 the Fed has already provided sufficient economic stimulus.
Record Fed stimulus has failed to bring about a sustained decline in the jobless rate, which climbed in July to 8.3 percent, the same level as January. The pace of payrolls growth slowed to an average of 73,000 a month in the second quarter compared with an average of 226,000 in the first quarter.