|
With inflation low and unemployment still painfully high, the Fed could take further action to help the struggling economy. At its June 19-20 meeting, the Fed agreed to extend a program that alters its bond portfolio to try to lower long-term interest rates. The aim is to inspire more borrowing and spending. And minutes of that meeting show a growing number of members are open to adopting further stimulus measures, such as launching another round of bond buying. But policymakers are at odds over whether the economy needs more help now. Since the Fed met last month, the job market's weakness has persisted. The government said last week that hiring in June slumped for a third straight month. The economy added just 80,000 jobs, and the unemployment rate was steady at 8.2 percent. In May, Americans didn't increase the rate at which they spent. The benefits of cheaper gas have been offset by three straight months of weak job growth and wage increases that have barely kept pace with inflation. Consumer spending drives roughly 70 percent of economic activity. Most economists see little change in growth in the April-June quarter from the tepid 1.9 percent annual rate in the first three months of the year. Some believe it has weakened.
[Associated
Press;
Copyright 2012 The Associated
Press. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
News | Sports | Business | Rural Review | Teaching & Learning | Home and Family | Tourism | Obituaries
Community |
Perspectives
|
Law & Courts |
Leisure Time
|
Spiritual Life |
Health & Fitness |
Teen Scene
Calendar
|
Letters to the Editor