Fed moves closer to more economic stimuli

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Associated Press

Posted on July 31, 2012 at 5:00 AM

Updated Tuesday, Jul 31 at 5:31 AM

WASHINGTON (AP) — The Fed is inching, perhaps, toward another round of bond-buying, but the only question is when.

As the central bank begins a two-day meeting today in Washington, the U.S. economy is the chief concern. It grew at an annual rate of just 1.5 percent in the second quarter, even slower than in the first quarter.

Fed Chairman Ben Bernanke says the Fed is prepared to take action if unemployment stays high. But many economists believe the economy hasn't slowed enough to compel the Fed to announce further help right now.

Paul Edelstein, director of financial economics at IHS Global Economics, says the Fed could call for another round of quantitative easing, where the central bank sells short-term bonds and buys long-term paper to help stimulate economic activity, especially in the housing market.

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%@AP Links

015-c-16-(Bryant Thomas, AP correspondent)-"there ever since"-AP Radio's Bryant Thomas reports economic actions by the FED are getting harder to recognize. (31 Jul 2012)

<<CUT *015 (07/31/12)>> 00:16 "there ever since"

013-v-32-(Bryant Thomas, AP correspondent)--The FED is inching toward another round of bond-buying, but the only question is when. AP Radio's Bryant Thomas reports. (31 Jul 2012)

<<CUT *013 (07/31/12)>> 00:32

014-c-16-(Bryant Thomas, AP correspondent)-"comes out Friday"-AP Radio's Bryant Thomas reports the Federal Reserve is beginning a two-day meeting in Washington. (31 Jul 2012)

<<CUT *014 (07/31/12)>> 00:16 "comes out Friday"

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