Federal Reserve policymakers, acknowledging a slowing economic recovery when they met in late June, began to consider the possibility of providing additional stimulus if growth fell sharply — a possibility that has become more real as signs of weakness pile up.

Minutes of the Fed's meeting on June 22-23, released Wednesday, indicate that while board members discussed the need for a contingency plan, they did not raise major new concerns about the economy. Even as Fed members noted the debt problems in Europe and the weak U.S. job market, they made only a tiny downgrade in their forecast for moderate economic growth this year and acceleration in 2011.

But that was before the release of a string of data in recent days that has pointed to further deterioration in key drivers of the economy, including consumer spending, housing and manufacturing.  More here.