…If European risks increase.

  • Sees modest US economic growth, but several Fed policy makers feel that if growth momentum wanes additional QE could be warranted.
  • Follows on from comments from Chairman Ben Bernanke last week that the Fed would be prepared to act if need be , although he didn’t see the need at the present time.
  • Sees inflation holding around the Fed’s 2% target “over the forecast horizon”

Comments made in a speech in Tokyo