Fed officials warn of looming crisis for economy
By Martin Crutsinger, Associated Press
WASHINGTON – The Federal Reserve is open to taking further action to support the struggling U.S. economy. But minutes of the Fed’s June meeting show policymakers at odds over whether the economy needs more help now.
A few members said the economy may already require additional support. But several others noted that further action “could be warranted” if the recovery lost momentum, if risks became more pronounced or inflation seemed likely to run below the committee’s target.
Investors appeared disappointed by the division within the Fed.
Stock prices sank after the Fed expressed concerns about the economy. The Dow Jones industrial average had been down nearly 40 points before the minutes were released at 2 p.m. Eastern time. At around 2:30 p.m., the Dow was down 112 points, on track for its fifth straight day of losses.
https://www.usatoday.com/money/economy/fed/story/2012-07-11/Fed-minutes/56150608/1
