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[redfoliage2]

Reuters Fed minutes: response needed if conditions worsen Tuesday August 28, 2:01 pm ET WASHINGTON (Reuters) - The Federal Reserve acknowledged at its last regular meeting that a policy response might be necessary if financial market conditions worsened, minutes of its August 7 meeting, released on Tuesday, show. "Members expected a return to more normal market conditions, but recognized that the process likely would take some time, particularly in markets related to subprime mortgages," the central bank's policy-setting Federal Open Market Committee said. "However, a further deterioration in financial conditions could not be ruled out and, to the extent such a development could have an adverse effect on growth prospects, might require a policy response," the Fed said.

Edited by redfoliage2, 28 August 2007 - 01:14 PM.