If the economic recovery stalls, more policy accommodation would be in order, most likely the Fed’s buying of mortgage-backed securities, Federal Reserve Bank of San Francisco president and chief executive John C. Williams said Wednesday.

“Looking ahead, we may still need to provide more policy accommodation if the economy loses momentum or inflation remains well below 2%. Should that occur, restarting our program of purchasing mortgage-backed securities would likely be the best way to provide a boost to the economy,” Williams said at the Bishop Ranch Forum, according to prepared text of his remarks released by the Fed.

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