Federal Reserve | featured news

U.S. employers in July hired the most workers in five months, but an increase in the jobless rate to 8.3 percent could keep prospects of further monetary stimulus from the Federal Reserve on the table.

The Federal Reserve’s policy-making committee took no new steps to support the economy at a meeting that ended Wednesday, although the committee signaled in a statement that it was ready to take new action if job growth does not improve.

As the Federal Reserve meets Tuesday and Wednesday to consider new stimulus for the weak economy, one of the key data it will be looking at is consumer spending, which is clearly waning.

A unique, hard-hitting report just completed by a California attorney exposes a largely unknown federal food-stamp racket involving large grocery retailers, food manufacturing giants and other private players, including the Federal Reserve and JPMorganChase, which combine to channel food stamp spending into a gravy train for the heavy hitters in the food industry.

Stocks rose Wednesday, as investors watched Fed Chief Bernanke deliver the semi-annual "Monetary Policy Report to the Congress" before the House Financial Services Committee.

Federal Reserve Chairman Ben S. Bernanke gave no indication Tuesday that the central bank was about to launch new economic stimulus, even as the Fed chief painted a worrisome picture of an economy losing momentum on a wide scale.

Consumer prices were flat in June as the cost of gasoline dropped, offering some relief for cash-strapped Americans and scope for the Federal Reserve to ease monetary policy further to help the faltering recovery.

Federal Reserve officials sent new signals they are seriously considering more actions to bolster the economic recovery but disappointed many investors by not indicating they are committed to taking action.

Investors appeared unimpressed Wednesday with the Federal Reserve's latest step to help the economy, an extension of a program to lower long-term interest rates. Stocks were little changed for the day, and the yields on Treasury bonds were trading about where they were before the Fed's announcement.

Stocks advanced on Tuesday, putting the S&P 500 on track for its fourth straight gain on increased hopes for central bank stimulus measures ahead of the Federal Reserve's policy meeting.