Minutes from the most recent meeting of the U.S. Federal Reserve's policy-setting panel showed that many officials expect to embark on a new round of monetary stimulus "fairly soon" unless the economy stages an unlikely comeback.
The Fed has kept interest rates near zero since December 2008 and expects weak economic conditions will warrant keeping them there through at least late 2014.
A majority of economists responding to a Reuters poll believe the Fed will embark on a third round of quantitative easing, or QE3, at the central bank's mid-September policy-setting meeting.
The following are recent comments from policymakers.
(An asterisk next to a name denotes the person in 2012 is a voting member of the policy-setting Federal Open Market Committee.)
* FED CHAIRMAN BEN BERNANKE, August 24
"There is scope for further action by the Federal Reserve to ease financial conditions and strengthen the recovery."
CHICAGO FED PRESIDENT CHARLES EVANS, August 24
"There's a lot of reason to do more. ... My first choice is to clarify our forward guidance, but since we can't seem to agree on these economic markers like I am mentioning, if we do more that's a pretty clear signal that we are here to stay for quite some time."
ST. LOUIS FED PRESIDENT JAMES BULLARD, August 23
"Going along at this slow pace is not enough to justify gigantic action." If growth returns to 2 percent, "maybe a bit stronger than that, unemployment ticks down ... that is not a great outcome, but to me that is a good enough outcome to keep us on hold."
JULY 31-AUG. 1 FEDERAL OPEN MARKET COMMITTEE MINUTES, August 22
"Many members judged that additional monetary accommodation would likely be warranted fairly soon unless incoming information pointed to a substantial and sustainable strengthening in the pace of the economic recovery."
* ATLANTA FED PRESIDENT DENNIS LOCKHART, August 21
"It's a cost-benefit calculation to consider more monetary stimulus and someone like me has to do his best to really carefully weigh the costs and benefits. I'm not finished with (that) process."
MINNEAPOLIS FED PRESIDENT NARAYANA KOCHERLAKOTA, August 16
"That 8.3 percent (unemployment rate) isn't translating to as much downward pressure on prices as we would normally think."
PHILADELPHIA FED PRESIDENT CHARLES PLOSSER, August 16
"There are diminishing returns to these actions. ... The evidence is not strong that somehow more (bond purchases) are going to help the unemployment rate move faster to where we'd like it to be. I don't see that there is much benefit."
KANSAS CITY FED PRESIDENT ESTHER GEORGE, August 16
"Is there anyone not borrowing today or purchasing a house because interest rates aren't low enough?"
DALLAS FED PRESIDENT RICHARD FISHER, August 15
"What good would it do to put still more out there since what we've already put out there is not having much effect on employment?"
* SAN FRANCISCO FED PRESIDENT JOHN WILLIAMS, August 10
"When you weigh the costs and benefits ... it's at the point where it is definitely tilting toward taking further action. ... The hurdle to taking this step is relatively high. In my view, we have reached that hurdle."
BOSTON FED PRESIDENT ERIC ROSENGREN, August 7
"You continue to do it until it's clear that you're no longer treading water. ... You continue to do it until you have documented evidence that you're getting growth in income and the unemployment rate consistent with your economic goals."
FISHER, August 6
"I'm afraid that as we get closer to election season, that people in the marketplace or elsewhere might draw that conclusion, and it might come back to haunt us," he said of his concern that further Fed easing could make the central bank look politically pliant. "I don't think this should inhibit a decision if it's a right decision, but I wouldn't want to see this torque up the political tension that surrounds the central bank."
* BERNANKE, August 6
"Even though some key aggregate metrics - including consumer spending, disposable income, household net worth and debt service payments - have moved in the direction of recovery, it is clear that many individuals and households continue to struggle with difficult economic and financial conditions."
* RICHMOND FED PRESIDENT JEFFREY LACKER, August 3
"I believe that exceptionally low federal funds rates are not likely to be warranted for this length of time (through late 2014)."
FEDERAL OPEN MARKET COMMITTEE STATEMENT, August 1
"The Committee will closely monitor incoming information on economic and financial developments and will provide additional accommodation as needed."
