The minutes to the late June FOMC meeting, in which policymakers decided to hold policy unchanged, suggest that they were relatively sanguine about the recovery’s prospects. The Fed staff forecast prepared for the meeting expected the economy to pick up pace during the second half of the year. While acknowledging weakening financial markets, policymakers felt confident that the aggressive easing that had already been implemented would be sufficient to soon jump-start the economy. Of course, as is clear from yesterday’s FOMC meeting, policymakers are now less confident over the recovery’s prospects
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