Fed Officials Cited ‘Substantial’ Risks to Economy at December Meeting

Federal Reserve policy makers saw “substantial” risks to the U.S. economy when they met last month and some saw the possibility of a “prolonged contraction,” according to minutes of the meeting released Tuesday.

Fed officials said “the economic outlook would remain weak for a time and the downside risks to economic activity would be substantial,” the minutes of the Dec. 15-16 meeting stated.

At the meeting, the Fed slashed the key U.S. interest rate to a record low “target range” of zero to 0.25%.