The Federal Reserve lowered its economic forecast as it moved to provide a controversial stimulus early this month and predicted unemployment could be higher than normal even when the economy is at full throttle again.
In the minutes of its Nov. 2-3 meeting released Tuesday, the central bank also shed light on why it decided in a 10-1 vote to buy $600 billion in Treasury bonds by June 30 in a bid to lower long-term interest rates. Reasons included fears the nation could fall into “persistent deflation” that would be “very costly.”
Full Story: Fed minutes show lower recovery expectations – USATODAY.com