The main discussion at last month's FOMC meeting was when to next raise interest rates. But the minutes show the committee had a discussion about their long-run policy strategy as well. While no official decisions were made during the discussion, policy makers said their future "framework should have the capacity to supplement conventional policy accommodation with other measures when short-term nominal interest rates are near zero." In other words, Fed officials are already thinking about the possibility that interest rates could return to zero in the future and that they must be prepared to take further steps. In recent years, the main additional and unconventional policy tool was QE. While the Fed is in tightening mode for now, the July discussion could signal officials are quite ready to initiate QE4 if needed.
Fed officials have been trying to nudge inflation up to their 2% target for more than four years and it's not getting any easier. Minutes of the central bank's July meeting show some officials continue to struggle to understand why inflation refuses to behave the way textbooks say it should. Some officials "expressed greater uncertainty about the trajectory of inflation," the minutes said. And "several" believe their inflation forecasts may be too optimistic as inflation expectations have remained low. Taken together, the minutes suggest Fed officials are no closer to resolving the conundrum that has been vexing them for years.
Couple of quotes from WSJ analyzing the FOMC statement.....I dont even know what to make of the very thought of QE4
You dont have to be great to START but you have to start to be GREAT!!!!!!!!