Federal Reserves Last Bullet To Save The Economy

Federal Reserve Has Only One Bullet To Save The Economy Stimulus

July 12, 2012

A few Federal Reserve policy makers said the central bank will probably need to take more action to boost the labor market and meet its inflation target, according to minutes of their June meeting.

By Jeff Kearns and Joshua Zumbrun

“A few members expressed the view that further policy stimulus likely would be necessary to promote satisfactory growth in employment and to ensure that the inflation rate would be at the Committee’s goal,” according to the record of the Federal Open Market Committee’s June 19-20 gathering released today in Washington.

Quantitative Easing
Cain and Todd Benson / Foter

Stocks fell as the report disappointed investors looking for a stronger signal that additional stimulus was likely. Fed Chairman Ben S. Bernanke last month said policy makers were prepared to “take additional steps” to boost the economy following their decision to extend the Operation Twist program aimed at lowering long-term interest rates.

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