WASHINGTON (AP) ? Some Federal Reserve officials pushed in August for a more aggressive response to the economy’s slowdown. They settled for a pledge to keep rates super-low for two more years and agreed to consider additional options at an extended meeting in September.
Minutes of the Aug. 9 discussions show that Fed officials discussed a range of actions, including another round of Treasury bond purchases. Some Fed officials said a weaker economy called for such a step.
Fed officials in the end opted to keep rates low until at least mid-2013. They also added a second day to their September meeting. That raised speculation that the Fed would announce some further action after that meeting.
Three Fed members opposed any steps for fear they could ignite inflation.