Fed’s forecasts for growth and inflation, that concluded the economic recovery to be proceeding more slowly than it was expected in the spring, appeared to be understated. However, members of Federal Reserve policymaking committee consider that the slowdown did not guarantee new policy actions.

Nevertheless, the Fed leaders agreed to explore options for supporting the economy further if conditions worsen.

Most members of the Fed policymaking committee still stay reluctant to take any new steps to try to encourage economic growth despite the softer outlook, given that the Fed's interest rate target is already near zero.

They view the remaining options to try to stimulate growth as risky and potentially ineffective, and continued economic expansion to be the most likely scenario.

However, in case the recovery continues to be delayed Fed will be pressured increasingly in order to do something about it. As showed the data released this week, the economy grew at a rate of just over 2% in the April through June quarter, not the 3 to 3.5% previously thought.

In forecasts made in advance of the meeting and released Wednesday, the officials expected GDP to grow by 3 to 3.5% this year, compared to a forecast of 3.2 to 3.7%  at their April meeting.

That lower growth could also be translated into unemployment staying higher for longer. Thus, Fed leaders predicts the jobless rate to be 9.2 to 9.5% in the fourth quarter, and to still be 8.3 to 8.7% at the end of 2011, both slightly higher than it was expected in April.

As for the inflation Fed members see little threat, anticipating prices to rise by 1 to 1.1% this year, compared to the 1.2 to 1.5% rate forecast in April. The new outlook is well below the 1.7 to 2% inflation rate that the Fed targets over the longer term.

 Meanwhile, Fed leaders are starting to discuss policies that they might use to further support growth if the economy continues to weaken, including pledging to keep interest rates low for even longer than now expected, cutting the interest rate on banks' reserves, and buying some additional mortgage securities.