Several Federal Reserve officials thought that it would “soon” be appropriate for a second round of quantitative easing to boost the economy, according to a summary released Tuesday of the discussion at their Sept. 21 meeting.
Fed officials said the statement released after their meeting included an indication that easing may be needed “before long.” They held off easing in September to gather more data and discuss how best to communicate about any new stimulus, the minutes show. The discussion about easing focused primarily on further Treasury purchases and also on steps to lift inflation expectations.
A few novel approaches were discussed, including being more specific about an inflation target, targeting a path for the price level rather than the rate of inflation or targeting a path for the level of gross domestic product without inflation adjustment.
Fed officials did not prepare forecasts at this meeting but the Fed staff trimmed their growth estimates for 2010 and 2011