Fed Could Be Open to More Stimulus

    Federal Reserve Board Chairman Ben Bernanke speaks during a press conference following the Federal Open Market Committee (FOMC) meeting in Washington, DC, June 20, 2012. The Federal Reserve on Wednesday slashed its estimate for the economy's growth this year by a half point, and projected unemployment would be higher than it thought just two months ago. AFP PHOTO / Saul LOEB        (Photo credit should read SAUL LOEB/AFP/GettyImages)

    Saul Loeb, AFP / Getty Images

    U.S. policy makers might be inclined to extend the stimulus for three more years if the economy is slowed down any further. In a meeting in Washington Wednesday, members of the Federal Open Market Committee suggested that the Fed should relax its policy a little in an effort to stabilize prices and increase employment. "You have a majority to do a lot more with even a small downward revision in the forecast," said a former associate director of the Fed Board's Division of International Finance. Fed Chairmen Ben Bernanke and others already extended their stimulus program through the end of the year but have been debating whether a third round of quantitative easing might be necessary.

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