In particular, some financial and capital markets in Asia are relatively small and in the process of development, so that a massive scale of capital inflows from abroad cannot be easily and effectively absorbed and increases the risk of credit booms and asset bubbles.
Although we project that economic growth will pick up and unemployment decline somewhat in the coming year, progress thus far has been disappointingly slow. In this environment, the Federal Open Market Committee (FOMC) judged that additional monetary policy accommodation was needed to support the economic recovery and help ensure that inflation, over time, is at desired levels.