The Federal officials hinted at the probability of reinvesting in mortgages in the future to aid the wavering recovery, after it declared to reinvest the procured funds from mortgage-backed securities into Treasuries earlier this month.

As showcased by the minutes of August 10 policy-setting meeting released on Tuesday, the refinancing of the mortgage-related securities was required to ease the credit situation in the economy. But as per some members in the meeting, the Government would have taken the decision to reinvest in longer-term Treasury securities rather than MBS, citing latter’s current condition in the market.

Responding to the minutes’ release, Win Thin, senior currency strategist at Brown Brothers Harriman, said, “The recent weakening in the U. S. economy has become worrisome and that policymakers are grappling with a possible policy response".

But, he didn’t anticipate any change in the policy of the Government in the meeting to be held on September 21.

According to the Wall Street Journal, more than 33% of the 17 FOMC participants were reluctant to the decision of refinancing of MBS.

The minutes also presented that some members participating in the meeting were concerned about the investors.

The members showed worry about the slow recovery of the economy coupled with low employment rate and threat of deflation.