The progress on bringing down the unemployment rate is now running at a snail's pace, said John Williams, the president of the San Francisco Federal Reserve Bank, on Monday
In a speech to a bankers' convention in Idaho, Williams said the Fed was facing a "sobering set of circumstances" that requires "extraordinary vigilance" from policymakers
Williams trimmed his growth forecasts for the next 18 months and said global financial market strains raise the possibility that growth and progress on employment will be even slower than expected
"In these circumstances, it is essential we provide sufficient monetary accommodation to keep our economy moving towards our employment and price stability mandates," he said
If further easing action is required, "the most effective tool" would be another round of asset purchases, including agency mortgage-backed securities
Williams said the Fed's decision to extend Operation Twist until the end of the year is expected to only have "a relatively modest impact" on the economy
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