Fed meeting reveals QE3 still a possibility

Minutes from the Federal Open Market Committee (FOMC)'s June meeting reveal members are divided over whether a third round of quantitative easing is the best option for the US economic recovery.

During the meeting, attended by chairman Ben Bernanke, the FOMC concluded the pace of recovery had slowed in recent months and cut its GDP forecast for 2011 to between 2.7% and 2.9%. "Some participants noted if economic growth remained too slow to make satisfactory progress toward reducing the unemployment rate and if inflation returned to relatively low levels after the effects of recent transitory shocks dissipated, it would be appropriate to provide additional monetary policy accommodation," the minutes said. "Others, however, saw the recent configuration of slower growth and highe...