Fed Has Dim View of the Economy But Reluctant to Take Additional Steps
The economy is recovering at a slower pace than expected but the situation doesn't require additional steps at this time.
That was the conclusion of the Federal Reserve Board's Open Market Committee during its June 23-24 meeting, according to minutes of the session released today.
"The changes to the outlook were viewed as relatively modest and as not warranting policy accommodation beyond that already in place," according to the minutes. "However, members noted that in addition to continuing to develop and test instruments to exit from the period of unusually accommodative monetary policy, the Committee would need to consider whether further policy might become appropriate if the outlook were to worsen appreciably."
The Fed also released a June forecast predicting that the Gross Domestic Product would grow between 3% and 3.5%. That's a downward revision from April's forecast of between 3.2% and 3.7%.
The June projection was for a jobless rate of between 9.2% and 9.5% for the fourth quarter of 2010 and between 8.2% and 8.5% for the fourth quarter of 2011.