Fed wraps up meeting as markets await action

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Associated Press

Posted on August 1, 2012 at 4:00 AM

Updated Wednesday, Aug 1 at 6:01 AM

WASHINGTON (AP) — Investors are hoping the Federal Reserve takes some new action to jolt the U.S. economy out of its slump, but economists don't expect a move until the September meeting.

The Fed concludes its two-day policy meeting today.

Investors would like to see another round of bond purchases, known as quantitative easing. The goal is to lower long-term interest rates and encourage more borrowing and spending.

U.S. growth slowed to an annual rate of just 1.5 percent from April through June, down from the 2 percent pace in the first quarter. And consumers spent no more in June than they did in May, even though their income grew by 0.5 percent.

Fed officials have signaled their concern about weakening job growth and consumer spending, which have brought the economy closer to a standstill.

Sound: 4:32aed

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