The likelihood that the US will soon launch a fresh burst of “quantitative easing” has increased, as minutes from the Federal Reserve’s latest meeting revealed that officials were nearing agreement on the need for additional stimulus.
The official record from the September 21 gathering of the Federal Open Market Committee, which sets interest rates, showed that “many” officials thought a new round of monetary easing might be necessary to breathe life into the sluggish US recovery.
The notes also revealed that officials thought they may have to act “before long” if economic conditions did not improve – meaning a decision could come as early as the next meeting of the FOMC on November 3.