Fed Hints More Action Coming in the Near Future
(WASHINGTON) — The financial world has Aug. 31 circled on its calendar as the day the Federal Reserve might finally get around to announcing more action in an effort to jumpstart the still foundering economy.
The tip-off came Wednesday as minutes from the Federal Open Market Committee stated, “Many members judged that additional monetary accommodation would likely be warranted fairly soon unless incoming information pointed to a substantial and sustainable strengthening in the pace of the economic recovery.”
Federal Reserve Chairman Ben Bernanke is scheduled to speak a week from Friday at an economic summit in Wyoming. It’s a speech that could reveal what the nation’s central bank has in mind for its September meeting.
If the Fed does make a move, it’ll likely be a third round of bond buying — called quantitative easing — which would help to stimulate the economy.
Bernanke and the Fed have held off for now, hoping that record-low interest rates would spur banks to lend more. But that hasn’t really been the case.
Meanwhile, Republicans on Capitol Hill want the Fed not to do anything more until at least after November because of the repercussions action might have on the volatile election season.
Copyright 2012 ABC News Radio