Few on Fed ready for more easing: June minutes - MarketWatch

Few on Fed ready for more easing: June minutes - MarketWatch

 A few Fed officials thought that more asset purchases would be necessary at the Federal Reserve's policy meeting in June, according to the minutes released on Wednesday. Several others said more action could be warranted if economic conditions deteriorated. the minutes showed. Only four Fed officials mentioned more quantitative easing in their individual forecasts, two in support of more easing and two saying they would consider it. Since the meeting, there has been weak reports for manufacturing and unemployment for June, which may have pushed more Fed officials to support more easing. Fed Chairman Ben Bernanke will discuss the outlook for monetary policy next week before Congress and analysts say he may provide an update of the policymakers' views after the weak data. The minutes also show that several Fed officials want to develop "new tools" to ease financial conditions. At the meeting, the Fed lowered its economic forecast, extended its Operation Twist program to the end of the year and highlighted that it was watching the labor market closely. The Fed interest-rate setting committee will meet again on July 31-Aug. 1.