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The US Federal Reserve, led by Chairman Ben Bernanke should adopt a gradual approach to QE2. Photo: GETTY

That report called log "measured approach" compared with investors an initial purchase at least 500 billion dollars in debt from the Treasury over five months, to stimulate lending and to support an economic upturn that is too low to tame the high unemployment rate commitment base-case scenario.

The newspaper gave no source for the report on its Web site and said that, although details remain to be sorted internally, outline took shape.

Fed officials meet on 2-3 November and largely should embark on a second round of the monetary easing, but much uncertainty surrounds the scope and pace of bond purchases possible.

The log for the u.s. Federal Reserve said wanted to avoid the "shock and awe" style used in the global financial crisis in favour of an approach which allowed them to adjust their policies and may add to their purchases over time as the recovery unfolded.

Told that the Fed would leave open the possibility of buying more in the future, especially if inflation is expected to remain under 2pc prospects for unemployment remain high and could stop the program if the economy and inflation departed surprisingly.

Purchase link is likely to focus on obligations of the Treasury with maturities mainly between two and 10 years, he said.

The US Federal Reserve could buy bonds in the long term, although some officials are reluctant to that aggressively because it can expose them to losses in the long term without much added advantage, he said.

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