Some policymakers at the US Federal Reserve have proposed further monetary stimulus if economic growth remains weak, according to the minutes of their last meeting in June.
“Some participants noted that if economic growth remained too slow to make satisfactory progress toward reducing the unemployment rate and if inflation returned to relatively low levels after the effects of recent transitory shocks dissipated, it would be appropriate to provide additional monetary policy accommodation,” the minutes say.
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http://www.ft.com/cms/s/0/9030f652-acad-11e0-a2f3-00144feabdc0.html#ixzz1Rv0PjQiTWhile some FOMC members thought that weak growth might create a need for further easing, others thought that slower growth and higher inflation suggest “that there might be less slack in jobs and product markets than had been thought”.
That could mean that the economy has less potential to grow and that it might soon hit a point at which wages started to rise and fuel overall inflation. “In that case, the withdrawal of monetary accommodation may need to begin sooner than currently anticipated in financial markets,” the minutes say.
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