FEDERAL RESERVE:The US Federal Reserve is likely to deliver another round of monetary stimulus "fairly soon" unless the economy improves considerably, according to minutes from the central bank's August meeting.

While the meeting was held before a recent improvement in economic data, including a stronger-than-expected July reading for US employment, policymakers were pretty categorical about their dissatisfaction with the current outlook.

“Many members judged that additional monetary accommodation would likely be warranted fairly soon unless incoming information pointed to a substantial and sustainable strengthening in the pace of the economic recovery,” the Fed said in minutes to its July 31st-August 1st meeting.

It comes as the non-partisan Congressional Budget Office said the US economy would probably tip into recession next year if politicians could not break an impasse over the federal budget.

Spending cuts in 2013 would reverse the modest economic recovery.