By Chris Isidore, CNNMoney.com senior writer October 14, 2009: 2:45 PM ET
NEW YORK (CNNMoney.com) -- Most Federal Reserve policymakers believe that an economic recovery has started, although they view the turnaround as weak enough that some want the central bank to continue taking steps to stimulate the economy.
The minutes of the Fed's two-day meeting, concluded Sept. 23, were the most explicit statement yet that the Federal Open Market Committee now believes the recession that started in December 2007 is over. The committee comprises the group of Fed governors and district bank presidents who set interest rates and take other steps to spur or slow economic growth.
"Most thought an economic recovery was under way," the minutes stated. "Many participants noted that since August, they had revised up their projections for the second half of 2009 and for subsequent years."
Up to now, the Fed's statements have been more circumspect. Its statement released at the end of the meeting said simply that economic readings suggest "that economic activity has picked up following its severe downturn."
Still, there was debate at the meeting about what to do next. Some members wanted to increase the amount of mortgages the Fed will buy from the $1.25 trillion level that had been previously announced. The Fed is buying up those mortgages in an effort to keep mortgage rates low.
At least one member wanted to instead cut the amount of mortgages purchased before reaching that level.
The members agreed that the job market is likely to stay weak for the foreseeable future -- and that is likely to keep wages from rising.
"Despite these positive factors, many participants noted that the economic recovery was likely to be quite restrained," according to the minutes. 
Comments(2)