Despite various stimulative policies, the U.S. economic recovery remains sluggish, a possible threat to the government's economic policy making.
A new document released by the U.S. Federal Reserve Tuesday showed that the central bank was more concerned with the pace of economic recovery and was "prepared" to take further steps to stimulate the economy if needed.
"The pace of recovery in output and employment has slowed in recent months," the Fed said in a statement.
The Federal Open Market Committee (FOMC), the interest rate policy making body of the central bank, said it will "continue to monitor the economic outlook and financial developments and is prepared to provide additional accommodation if needed to support the economic recovery".
Based on information gathered since the FOMC's last meeting on Aug. 10, the Fed said that U.S. household spending is increasing gradually, but remains constrained by high unemployment, modest income growth, lower housing wealth and tight credit.
Business spending on equipment and software is rising, though less rapidly than earlier in the year. However, investment in nonresidential structures continues to be weak. Employers remain reluctant to add to payrolls.
The U.S. economy grew at 1.6 percent in the second quarter, much slower than in the previous quarter, which recorded a 3.7 percent increase./.