The Federal Reserve released the minutes from the last monetary policy meeting over December 15th and 16th; and their observations were discouraging. Though the Federal Open Market Committee decided to lower the benchmark lending rate to encompass a range between zero and 0.25 percent (a record low under modern policy efforts), it was clear from their forecasts that policy makers would have to come up with additional measures to turn the economy and stabilize credit conditions. Among the notable comments made, officials said "the economic outlook would remain week...and the downside risks to economic activity would be substantial." Furthermore, the more pessimistic members of the group saw "a distinct possibility of a prolonged contraction" as stubbornly tight credit conditions for businesses and consumers prevented a recovery. As for inflation, they seem uncertain as to whether this economic influence will be a boon or burden. Prices are expected to diminish further "because of the emergence of substantial slack in resource utilization and diminishing pricing power" and could "persist for a time at uncomfortably low levels." Typically low prices meets an equilibrium with demand and eventually encourages a rebound in consumption; but sustained contractions could tip the economy into deflation, which brings a whole new set of problems. Considering recent speeches by policy officials and official Fed chatter, it is clear that policy group will look to increase its balance sheet by holding toxic debt; but whether this will hurt or hinder the US economy and dollar remains to be seen. So far, efforts aimed at quantitative easing have yielded little beyond a larger debt for the US government.