U.S. Federal Reserve officials believed that uncertainty surrounding the economic outlook remained "very elevated," with the path of the economy highly dependent on the course of the virus, according to the minutes of the Fed's latest policy meeting released Wednesday.

"Several risks to the outlook were noted, including the possibility that additional waves of virus outbreaks could result in extended economic disruptions and a protracted period of reduced economic activity," said the minutes of the central bank's meeting held on July 28-29.

At the meeting, the Federal Open Market Committee (FOMC), the Fed's policy-setting body, kept its benchmark interest rate unchanged at the record-low level of 0-0.25 percent while warning that a recent resurgence in COVID-19 cases nationwide is starting to weigh on economic recovery.

Participants continued to judge that it would be appropriate to maintain this target range until they were confident that the economy had weathered recent events and was on track to achieve the Committee's maximum employment and price stability goals, the minutes said.

"Members agreed that the ongoing public health crisis would weigh heavily on economic activity, employment, and inflation in the near term and was posing considerable risks to the economic outlook over the medium term," according to the minutes.

The minutes also highlighted the need for a new round of fiscal relief, noting that "additional fiscal aid would likely be important for supporting vulnerable families, and thus the economy more broadly, in the period ahead."

Negotiations between Democratic leaders and White House officials collapsed earlier this month, with both sides blaming each other for making little progress on the much-needed relief package.

The U.S. economy contracted at an annual rate of 32.9 percent in the second quarter as the country grappled with the fallout of COVID-19 lockdowns, the deepest decline since the government began keeping records in 1947. A rebound is expected in the third quarter, but recent resurgence of COVID-19 cases, which have hindered some states' reopening efforts, could undermine the prospect of economic recovery.