- Gentlemen, start your drones: Judge’s ruling opens door for commercial use
- Soldier who hid, bragged about not saluting flag to be punished — in secret
- ‘Maverick’ of the seas: ‘Top Gun’ school for U.S. ship officers to launch
- Putin declares Sochi Paralympics open amid Ukrainian protest
- ‘In Jesus name, we pray’ sparks ire at Ohio council meeting
- Navy’s first laser weapon ready for prime time; drone killer to deploy this summer
- Billionaire backer: Rick Santorum ‘needs to be heard’ in 2016
- Obamacare fallout: 49 percent pessimistic; 45 percent ‘scared’
- DHS accused of holding U.S. citizen at airport, using emails to pry into her sex life
- Seattle socialist: Minimum-wage discussion skewed by ‘right-wing’ GAO analysis
Weak job growth makes bold Fed action more likely
WASHINGTON (AP) — U.S. employers added 96,000 jobs in August, a tepid figure that points to the economy’s persistent weakness and slowing prospects for the unemployed.
The unemployment rate fell to 8.1 percent from 8.3 percent in July. But that was only because more people gave up looking for jobs. People out of work are counted as unemployed only if they’re looking for a job.
The sluggish job growth could slow the momentum President Barack Obama hoped to gain from his speech Thursday night to the Democratic National Convention.
It could also make the Federal Reserve more likely to unveil a new bond-buying program at its meeting next week. The goal would be to lower long-term interest rates to encourage borrowing and spending.
Hourly pay fell in August, manufacturers cut the most jobs in two years and the number of people in the work force dropped to its lowest level in 31 years. The government also said 41,000 fewer jobs were created in July and June than first estimated.
Here’s what the Associated Press’ reporters are finding:
FED LIKELY TO ACT
Will the Federal Reserve go big next week?
Most economists say they expect the Fed to announce action to try to stimulate the economy. And many now think the Fed will make the boldest move it can — a third round of bond buying to try to lower long-term interest rates.
This is known as quantitative easing.
Nigel Gault, chief U.S. economist at IHS Global Insight, thinks the Fed will focus any new purchases on mortgage-backed securities to try to lower mortgage rates and boost the fledgling housing recovery.
TWT Video Picks
Taxpayers must pay the freight for over-budget train projects
- Kim Jong-un calls for execution of 33 Christians
- Rand Paul wins 2014 CPAC straw poll, Ted Cruz finishes a distant second
- Vietnam says it may have found door of missing Malaysian jet as intel look into stolen passports
- Bill Clinton poses for photo with Bunny Ranch prostitutes
- CARSON: Why did the founders give us the Second Amendment?
- Bill Clinton cashes in on struggling nonprofit hospital
- U.S. pilot scares off Iranians with 'Top Gun'-worthy stunt: 'You really ought to go home'
- Russias Putin nominated for Nobel Peace Prize
- CPAC 2014 straw poll results
- FIELDS: Oscars' fantasy on the Left Coast
Pope Francis meets his 'mini-me'
Celebrity deaths in 2014
Winter storm hits states — again