Bloomberg reported that Federal Reserve policy makers are developing plans for further monetary easing despite the fact that better-than-expected economic reports have quelled some concerns that the U.S .may be heading  toward a double-dip recession.

The article quotes Fed Vice Chairman Janet Yellen as saying that a third round of large-scale asset purchases “might become appropriate if evolving economic conditions called for significantly greater monetary accommodation.”

According to the article, Yellen also stated that the U.S. economy is vulnerable to spillover effects from Europe’s fiscal crisis. “The potential for such adverse financial developments to derail the recovery creates, in my view, significant downside risks to the outlook,” she said.