Federal Reserve officials see a stronger US economy but a recovery "restrained"

15 October 2009  Finfacts

Federal Reserve officials see a stronger US economy but a recovery "restrained" by high unemployment and challenging credit conditions, minutes issued on Wednesday show. The dollar fell after expectations of continued low interest rates, were signalled by a low inflation outlook. 

The minutes of the September 22-23 meeting of the Federal Open Market Committee (FOMC) show worries about unemployment and the strength of the recovery.

Some policymakers said expanding the central bank’s $1.25 trillion mortgage-backed securities purchase program may help boost the economy amid concerns the recovery may fade.

“Some members thought that an increase in the maximum amount of the committee’s purchases of agency MBS could help to reduce economic slack more quickly,” according to minutes. One member said the improvement in the outlook could warrant a reduction in purchases.

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