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Low Prices, Weak Hiring Raise Odds of Fed Action

Associated Press (06/14/12) Christopher S. Rugaber

Federal data released Thursday indicate the job market is softening, and consumer prices are barely rising. Some economists say the U.S. Federal Reserve will likely announce a new move next week to support the economy. Economists say the Fed is likely to extend “Operation Twist,” a program that aims to further lower long-term interest rates to boost borrowing and spending. The economists are predicting slower economic growth and say job growth in June is unlikely to be much better than it was in April or May.