In its latest minutes, policymakers of the Federal Reserve indicated the need for further easing in monetary policy to offset the harm caused to the US economy due to the ongoing coronavirus pandemic. So far, the Fed has brought down interest rates close to zero and resorted to bond purchases worth trillions of dollars.

In its last meeting during the end of July, FOMC members highlighted that the pickup in employment figures was showing signs of slowing down in July after rising higher during May and June. They also stated that employment numbers could rebound only as business activity resumed in a “broad and sustained” manner.

In the minutes, Fed officials observed, “Noting the increase in uncertainty about the economic outlook over the intermeeting period, several participants suggested that additional accommodation could be required to promote economic recovery and return inflation to the Committee’s 2% objective.”

Similar to the previous recession, Fed officials are considering keeping interest rates low for the foreseeable future, until economic data improves or until a specific deadline. In addition, they also seemed to not favor the idea of imposing caps/targets for Treasury yields, but some wanted to keep this option available for possible use in the future, if required.