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Forex pairs in this Article » (Córdoba) - The minutes relating to the Federal Open Market Committee (FOMC) meeting of Sep 12-13, revealed all members but one agreed that the outlook for economic activity and inflation called for additional monetary accommodation as the pace of improvement in the labor market remained slow.

As part of its aggressive effort to spur the economic recovery, the Fed announced it would buy $40 billion of mortgage-backed securities each month, until the labor market significantly improved.

"The Committee agreed that it would closely monitor incoming information on economic and financial developments in coming months, and that if the outlook for the labor market did not improve substantially, it would continue its purchases of agency MBS, undertake additional asset purchases, and employ its other policy tools as appropriate until such improvement is achieved in a context of price stability", the minutes said.

The minutes also showed that a number of participants questioned the effectiveness of continuing to use a calendar date to provide forward guidance regarding the future path of the federal funds rate. Instead, many members thought that more-effective forward guidance could be provided by specifying numerical thresholds for labor market and inflation indicators. However, members acknowledged that agreeing on the exact levels will be difficult.

Risks of inflation were seen as balanced by most Fed members according to minutes. One warned of easing encouraging greater risk taking, and a few expressed skepticism that QE3 could help to spur the economy, that they saw as "held back by uncertainties and a range of structural issues". However, they felt that adverse effects of the program could be managed "since the committee could make adjustments to its purchases, as needed".

In their economic outlook, Fed officials expected the pace of economic growth would remain "moderate over coming quarters but would pick up over the 2013-2015 period". They also saw risks from the European sovereign debt crisis and the uncertainty over the U.S. budget outlook.
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