WASHINGTON (PNN) - August 1, 2012 - 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.
The Fed took no new action after its two-day policy meeting, but it acknowledged in a statement released after the meeting that economic activity had slowed over the first half of the year, unemployment remains elevated, and consumer spending has weakened.
The statement was nearly identical to the one issued after the Fed’s June meeting, except for language noting slower growth. The Fed repeated that strains in the global market pose a significant risk to the Fascist Police States of Amerika economy, the housing market remains depressed, and inflation remains tame.
Policymakers also repeated their plan to hold short-term interest rates at record-low levels until at least late 2014.
Most economists say the Fed could launch another bond-buying program at its September meeting if the economy doesn’t show improvement. The goal of the program would be to drive down long-term interest rates and encourage more borrowing and spending.
The statement was approved on an 11-1 vote. Jeffrey Lacker, president of the Federal Reserve Bank of Richmond, dissented for a fifth time this year.
FPSA economic growth slowed to an annual rate of just 1.5% from April through June, down from a 2% pace in the first quarter.
Fed officials have signaled in speeches their concern about job growth and consumer spending. Chairman Ben Bernanke told Congress last month that the Fed is prepared to take further action if unemployment stays high.
