Fed: No New Steps Despite Slowing Economy
Description
The Federal Reserve said Wednesday that the economy is losing strength and repeated a pledge to take further steps to stimulate growth if the job market doesn't show sustained improvement. (Aug. 1)
Transcript
In capping a two day meeting, the Federal Reserve acknowledges what's widely believed, that the economy has lost momentum.And as Chairman Ben Bernanke has promised before, the Fed repeated that it stands ready to act if the job market doesn't perk up.In a written statement, the central bank noted that unemployment remains high and consumer spending is faltering.Going into this meeting, analysts felt that any new action wouldn't come until the Fed's September meeting at the earliest.But short-term interest rates are already at record lows. The fed's biggest near-term worries are Europe's financial crisis, sapping strength from American manufacturers... and the so-called fiscal cliff, tax hikes and spending cuts set to take effect in the new year, if Congress and the administration are otherwise unable to agree on a solution.(****END****)