MW: Rate cuts were put on table at Sept. Fed meeting: minutes
By Greg Robb
WASHINGTON (MarketWatch) -- At the Federal Reserve's last formal meeting in mid-September, some officials raised the possibility that the central bank might have to lower rates further in coming months if the financial turmoil worsened, according to a summary of the meeting released on Tuesday. But no one of the Fed pushed for a rate cut at the Sept. 16th meeting, the summary said. A rate cut "was not called for at this meeting," the summary said. Some on Fed were still concerned that inflation would not weaken in coming months and would rise again as the economy improved next year. The Fed staff was more pessimistic about growth in 2009, the summary said. Most Fed officials still expected "a gradual recovery" next year after a weak six months. In a speech earlier Tuesday, Fed chief Ben Bernanke himself signalled that the Fed was prepared to cut rates again. The financial turmoil has spread since the last FOMC meeting.
