KTVL CBS Channel 10 Mailing List

News10 LiveLinks from BroadcastDrive Safe Mode
KTVL CBS Channel 10 :: News - Top Stories - Fed: Economy is losing strength

Wednesday, August 1 2012, 04:06 PM CDT
Fed: Economy is losing strength
By Martin Crutsinger/AP Economics Writer

WASHINGTON (AP) — The Federal Reserve said Wednesday that the U.S. economy is losing strength and repeated a pledge to take further steps to boost growth if hiring remains weak.

The Fed took no new action after a 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, with job creation remaining sluggish and consumer spending tapering off somewhat.

The Fed reiterated its plan to hold short-term interest rates, now near zero, at very low levels until at least late 2014.

Market reaction to the Fed's announcement was muted. Stock indexes dipped shortly after the statement was released at 2:15 p.m., but then moved higher. In the last half hour of trading the Dow Jones industrial average was flat. The yield on the 10-year Treasury note increased from 1.50 percent to 1.53 percent.

The statement was slightly different than the one issued after the Fed's last meeting, June 19 and 20.

In addition to noting that the economy had "decelerated," the Fed's policymaking committee said it would "closely monitor incoming information" and "will provide additional accommodation as needed" to stimulate the economy and job creation. In the June statement the central bank said "the economy has been expanding moderately" and that it "is prepared to take further action as appropriate."

Many economists believe the Fed could launch another program of buying government bonds and mortgage-backed securities at its September meeting if the economy doesn't show improvement. The goal of the program, known as quantitative easing, would be to drive long-term rates, which are already at record lows, even lower.

The Fed's next move could depend on whether Europe's central bank, which meets Thursday, takes any action to stimulate growth among the 17 countries that use the euro.

The next big signal on the U.S. economy's health comes Friday, when the U.S. Labor Department reports on July hiring and unemployment trends.

Economists forecast that U.S. employers added 100,000 jobs in July. That would be slightly better than the 75,000 a month average from April through June but still below the healthy 226,000 average in the first three months of the year. The unemployment rate is expected to stay at 8.2 percent.

Economists will also be watching Chairman Ben Bernanke's words closely at an annual economic conference Aug. 30 through Sept. 1 in Jackson Hole, Wyo.

"The Fed took no action at this meeting but strongly hinted that there will be further easing action at the next meeting in September," said David Jones, chief economist at DMJ Advisors.

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. He objected to the Fed including language in the statement about keeping short-term rates low until late 2014.

U.S. economic growth slowed to an annual rate of just 1.5 percent from April through June, down from a 2 percent rate in the first quarter.

Fed officials have signaled in speeches their concern about job growth and consumer spending. Bernanke told Congress two weeks ago that the Fed is prepared to take further action if unemployment stays high.

Worries have also intensified the U.S. economy will fall off a "fiscal cliff" at the end of the year. That's when tax increases and deep spending cuts will take effect unless Congress reaches a budget deal. A recession could follow, Bernanke has warned.

Economists also worry that the debt crisis in Europe could intensify. Borrowing costs are too high for many governments, including Spain and Italy, and growth is slowing across the region as the effects of budget-cutting take hold. Unemployment hit a record 11.2 percent in June for the 17 countries that use the euro currency.

The European Central Bank holds a policy meeting Thursday and expectations are rising that it could try to jolt the region's financial system through bond purchases or other measures. ECB President Mario Draghi said last week that he was ready to "do whatever it takes" to save the euro currency union.

"The Fed is waiting for more data and they're waiting for Europe," said Sharon Stark, chief market strategist at Sterne Agee, who emphasized the ECB's meeting this week.

The Fed has already completed two programs aimed at driving down interest rates to encourage more borrowing and spending. It bought more than $2 trillion in Treasurys and mortgage-backed securities, expanding its balance sheet above $2.8 trillion.

The Fed has been running a program since September in which it sells short-term Treasurys and buys longer-term Treasurys. The program, called Operation Twist, will run through the end of the year and shift $667 billion from short-term to longer-term Treasurys

Even if the Fed launched a third round of bond purchases, few think that further lowering long-term rates would provide much benefit to the U.S. economy. Most businesses and consumers who aren't borrowing now aren't likely to change their minds if rates slipped a bit more.

The yield on the benchmark 10-year Treasury note is already near its record low of 1.39 percent, which it touched last week. The national average rate for a new-car loan barely tops 3 percent. And the average on a 30-year fixed-rate mortgage fell below 3.5 percent last week for the first time on records dating back 60 years.

Some regional Fed bank presidents have expressed concern that expanding the Fed's balance sheet beyond its current record $2.9 trillion to try to lower rates more would heighten the risk of high inflation later.

For now, U.S. inflation is low. Core consumer prices, which exclude volatile food and energy costs, have risen just 2.2 percent over the past 12 months. That's near the Fed's 2 percent target for inflation.

Fed: Economy is losing strength

[an error occurred while processing this directive]

Related Stories

  • KTVL :: Community - Mr. Food

    Mr. Food

    See the most recent TV Recipes & Videos!
  • KTVL :: Community - Auto Preview

    Auto Preview

    Catch the 2015 Auto Preview show here!
  • KTVL :: Community - Providence Healthy Avenues

    Providence Healthy Avenues

    Providence gives you the inside scoop on how to make your life healthier and easier one week and one minute at a time.
  • KTVL :: Community - Ray's Stuff The Truck

    Ray's Stuff The Truck

    Join us in the fight against hunger!
  • KTVL :: Community - LIVE with News10 <br> Good Morning

    LIVE with News10
    Good Morning

    Every morning the News10 Good Morning takes you LIVE to the events affecting YOUR community. Miss the morning broadcast? News10 has you covered -- all of the videos are available here.
  • KTVL :: Community - Health and Beauty

    Health and Beauty

  • KTVL :: Community - Automotive


    Find valuable information about buying your next car, including price quotes and your latest automotive news.
  • KTVL :: Community - Community Toy Drive

    Community Toy Drive

    Find out how you can help today!
  • KTVL :: Community - Community Calendar

    Community Calendar

    Looking for something to do? Check the events calendar.
  • KTVL :: Community - Gas Prices

    Gas Prices

    Gas prices are on everybody's mind. So News10 is working with Gas Buddy to help you find the cheapest gas in the area.
  • KTVL :: Community - West Coast Flavors

    West Coast Flavors

    Who doesn't love good food? News 10 invites area chefs to the West Coast Appliance kitchen to cook up their favorite recipes.

KTVL Top Stories

Unconfirmed threat closes SOU's Ashland campus classes

Bomb threat emergency plan successful

California governor signs law targeting gender wage gap

ACLU lawsuit: County jails people who can't pay court fines

Harvard's prestigious debate team loses to NY inmates

Ore. teen sentenced to 10 years in great-grandmother's death

Stolen truck found but tofu and organic drinks missing

Ex-UN General Assembly head among 6 held in bribery scheme

Disaster plan developed in case fire reaches nuclear waste

LAPD: Rap group posted video of gun flashed near officer

Texas executes inmate for killing man in $8 robbery

Thousands of federal drug inmates set for early release

Josephine County Fire Departments Suffer From Sheriff Budget Cuts

UCC Scams & How To Donate Securely

Police: Grants Pass teen arrested, intended to confront an officer

SOU to host UCC support events Thursday

Officials: Man arrested for sexually abusing teen

Oregon community colleges to hold vigils for Umpqua Community College

Oregon State Police arrest 2 for deer poaching

Oregon wildlife officials ask public to report sick elk

Pilot who became ill aboard flight died of natural causes

Ohio man calls cops to complain he got too high on marijuana

Mixed reactions to new California racial profiling law

Woman found inside portable toilet gets arrested on warrants

Students and Faculty Reflect on Re-Opening

Umpqua Community College Re-Opens

Marijuana dispensary hits business record with recreational sales

TPP trade agreement could put Oregon beef industry on map

Publisher apologizes for textbook calling slaves 'workers'

Hunter escapes attack by shoving arm down bear's throat

'Fire hose' of moisture slams South Carolina; 12 killed

Data hack at 7 Trump hotels confirmed

'Oh, my God': Man who finds missing 2-year-old girl jubilant

Marijuana pesticide flap brings consumer lawsuit in Colorado

Woman accused of injecting 14-year-old daughter with heroin

Supreme Court rejects San Jose appeal over Athletics' move

Amtrak train hits rocks on track, derails in central Vermont

Farmer opens barn to show woolly mammoth bones

Medford Library to re-open Tuesday following RCC bomb threat

Obama to visit Oregon shooting victims' families

Gunman ranted about not having girlfriend

No explosives found on Rogue Community College campuses, investigation ongoing

California governor signs hard-won right-to-die legislation

Motorcyclist dies following failed traffic stop

Woman arrested in connection to Wednesday Eagle Point pursuit

Classes Cancelled for Rogue Community College and SOU's Medford campus

All Rogue Community College campuses evacuated for bomb threat

Oregon shooter showed little sympathy in calculated killings

Pastor Shares Daughter's Story of Survival

Art Along the Rogue wraps up

Drive Less Connect program kicks off

Car wash held for UCC victims

Bubble Indoor Soccer bounces into Medford

Spiritual Candlelight Vigil

UCC Shooting Timeline

UCC Shooting Victim's Family Speaks Out

Medford Police Deals with Stolen Bikes Regularly

Drumming Up a New Audience at Music Festival

Community Members get Tour of Renewable-Energy Sites

Medford Fire-Rescue Debuts Sprinkler Trailer

Medford Battalion Chief Leaves for Roseburg

15 Now at the Talent Harvest Festival

How To Help UCC Victims

Bush, Clinton display the political divide over gun control

Accident on Interstate 5 overpass causes backup

Victims in UCC shooting identified

Oregon gunman was Army dropout who studied mass shooters

Sheriff maintains support for gun rights after mass shooting

Aunt of wounded victim: Nephew tried to stop college shooter

'We began to run': Students describe horror of shooting

No confirmed threat for Coos County

Potential threats against Ashland High School cancel homecoming parade

S.O.U. Response to U.C.C. Shooting

A Drive for Food Drives in Ashland

Gunman opens fire at Oregon college

Parkinson's Patient Walking Again

Medford Hospitals Stood By For Shooting Victims

Medford Police & Fire Station Update

Douglas Sheriff gives new UCC shooting numbers

Five acre fire reported near White City

Oregon leaders react to Roseburg shooting

Rogue Credit Union establishes donation fund for UCC shooting victims

Josephine County Sheriff's Office responds to Umpqua Community College shooting

10 confirmed dead in Umpqua Community College shooting

Bakery owners refuse to pay damages in gay wedding cake case

Ex-police volunteer who stole guns sentenced to prison

Your Sports: 09.30.2015

Take it or "Leaf" it: Ashland's Tree of the Year Nominations

Making Way for Recreational Marijuana

Ashland Co-op Outgrowing its Space

Marijuana dangerous for children?

Artist shot, killed while painting anti-violence mural

Amid Taliban gains, US military favors longer presence

Protestors hope governor will take action against pipeline

EPA sets limit for toxic pollutants released into waterways

Oklahoma sheriff indicted, plans to resign

Hurricane Joaquin gains force near Bahamas, heads toward US

Immigrants say about-face on visas costs them millions

Oregon regulators fine aerial pesticide spraying company

Hunters warned of fire danger

Compass House Celebrates First Birthday

Mt. Ashland announces fall pass sale

A Medford Apartment Complex Is Not Up To Code

MADGE: One in custody in Eagle Point pursuit, still searching for another

Josephine County Board of Commissioners sues Kairos Northwest, Umqua Bank

Patrolling for Weed

Only woman on Georgia's death row executed; 1st in 70 years

Eagle Point horse tests positive for West Nile virus

Jackson County Fire District 3 receives Lowe's Hero Grant

Coos Bay man fatally struck while trying to get mail

Things to know about recreational marijuana sales

One Man Resentenced Because Of A Supposed Computer Glitch

County denies land-use permit for Mountain View Paving

Authorities ask family of missing persons for DNA, records

Consumer agency hears about student loan servicing problems

Burned as baby, woman finally meets nurse who cared for her

Novelist quits teaching at Arizona college over loyalty oath

Keystone XL developer drops landowner lawsuits in Nebraska

Haunted Houses Take Safety Precautions

Environmental groups seek end to all Arctic Ocean drilling

Four vehicle crash on Highway 199 causes delays

Amazon tests Uber-like service for deliveries

Police: Mom tossed newborn out 7th-story window in New York

Trump breaks Fox News 'boycott' after 1 week

Catherine Coulson, who played Log Lady in 'Twin Peaks,' dies

How to turn off 'Wi-Fi Assist': the iOS9 update that could cost you thousands of dollars

Fugitive accused of kidnapping arrested after 24 years

Oklahoma panel orders removal of Ten Commandments monument

Facebook status hoax returns

Cooler weather changes game for motorcycle safety

Klamath County District Attorney's Office overwhelming amount of homicides

Brady Adams Tribute

Actor Paul Walker's daughter sues Porsche over fatal crash

Autopsy: High school quarterback died from internal bleeding

Drivers from Taiwan get reprieve from driver's license test

Idaho woman gets 1½ year term for California egg donor fraud

Washington state suspends operations of duck tour company

Takata air bag recalls could expand to 7 more companies

Senate advances stopgap spending bill to avoid shutdown

Planned Parenthood president 'proud' of fetal tissue work

Whole Foods to cut about 1,500 jobs over next 8 weeks

EPA rules will strengthen pesticide safety on farms

Oregon medical marijuana dispensaries gear up for rec sales

Marijuana bundle falls from sky, slams into family's carport

Cooking fire in double-wide kills two dogs

Strong evidence Mars has streams of salt water in summertime

Amphibious tour vehicle lacked axle fix before Seattle crash

Woman arrested in connection to weekend Klamath Falls murder

Exit 24 Opens Early

Crash on Highway 99

Students Love "S.O.U. Loves Ashland" Event

Growers and Crafters Market Concerns

Hot Air Balloon Fair Does More For Montague

Rally For Water

Labor Justice advocates speak against toxins

Boles Victim battles Rite Aid

Man sentenced to 32 years for seven bank robberies

Feeding wild animals is legal in Oregon

College spending predicted to be $43 billion dollars

Ashland man says his putter will revolutionize golf

Brookings Gas Tax Update

Rental Issues

Ashland Police start Narcan program

Major roadwork closes connection between Interstate 5 and HWY 99

National Prescription Drug Take Back Day

Police: Klamath Falls Burglary caught in the act

Speaker Boehner stuns Congress, announces resignation

Officials: Two men arrested in connection to Redmond kidnapping

Police: Man seriously injured in Medford DUII crash

Luxury restaurant Canlis closes to feed first responders in fatal crash

Medford school bus crash

'Right to Hunt' ballot measure headed to court

Judge dismisses challenge to Oregon climate change program

Drive-Less Challenge Hits the Road Again

Pawn Shop Backroom Pieces

Curry County Has A New Emergency Notification System

No Property Taxes For Some In Brookings?

New shop, rough spot

Fair student housing being reviewed

Records detail dramatic response to California wildfire

Rogue Valley Animal Shelter Seeks Volunteers

Volunteers Prepare for Rogue River Clean-Up

Sheriff apologizes to lawyers asked to remove bras at jail

Unable to call 911, hostage uses Facebook to find help

6 killed, 7 hurt when SUV rolls during Texas police chase

EU promotes hotspots as fast track answer to refugee crisis

Mother calls police shooting of son in wheelchair 'unjust'

Weather service accidentally sends Connecticut tsunami alert

Sexting case highlights quandary over child porn laws

Woman says deer attacks can be prevented

Klamath Falls man sentenced in women's poisoning

Four-time Iditarod champ lands in Medford

Four dead, many critically injured in Seattle tour bus crash

Former Medford Police Chief Passes

Doll Helps Explain Menstrual Cycles To Girls

Hay Mazing

Dispensaries prepare for October 1st

Concerns on Campus

Your Sports: 09.23.2015

Hundreds of millions in damage estimated in California fire

New park hopes to have less crime

Bear hit with tranquilizer dart runs into pond, drowns

Klamath County Sheriff Update

Haggen's Final Days

Klamath Falls Kids Measuring Air Quality

Planning for "The Big One"

Firefighters Train for Mayday Exercise

Principal: Texas football coach says he ordered hit on ref

Reality show's ghost-hunting couple dead in Nevada standoff

Sixth body found in rubble of Northern California wildfires

Police: N. Carolina girl dies after dad's drowning attempt

'We got him!' tweet draws scrutiny in freeway shootings case

$134M for recovery projects arising from 2010 Gulf oil spill

Judge OKs manslaughter count vs. teen who encouraged suicide

Volkswagen CEO steps down, takes responsibility for scandal

Clean up plan for Ashland railroad property

Mayor plans televised summit to discuss aggressive deer

Army corps. of enginners design new inundation maps

Man charged with punching 78-year-old over waffle sample

One arrest in connection to Curry county home invasion

Pope Francis arrives in US, faces a polarized country

OSP Under Investigation?

High Rates of Obesity in Veterans

Bobbio's Opening New Restaurant

Sage grouse plan aims for balance between industry, wildlife

New York City cherry company pleads guilty in marijuana case

Whistleblowers: VA inspector general a 'joke'

Senate blocks anti-abortion bill; new showdown set

Deputy kills man pointing stapler during standoff in Florida

Deputy saves drowning kids in dark pond; the dad is arrested

Cops: Chocolate factory worker makes bomb threat to be fired

Klamath Falls Bans Recreational Pot

Jacksonville's Oktoberfest

Woman leaps from car after spotting spider, leading to crash

Ore. Democrats backtrack, cancel Planned Parenthood hearing

Drone delays Oregon high school football game

Taking out the clubs for a good cause

Grants pass needs to improve public safety?

Border Patrol: Family, kid arrests at border soar 52 percent

Second Shooting On Narregan Street in West Medford

Shooting Inspires Neighborhood Watch

[an error occurred while processing this directive]
Should your town impose a 1-year moratorium on medical marijuana dispensaries?
ASHLAND, Ore. (AP) — One of Oregon's more liberal cities is considering a moratorium on medical marijuana dispensaries.

The Ashland Daily Tidings newspaper reports that the Oregon Health Authority Medical Marijuana Dispensary Program has already received six dispensary applications for Ashland.

But neighborhood opposition has been increasing and the council will discuss a moratorium on April 1.

People hoping to launch dispensaries in Oregon began submitting applications to the state on March 3 as part of a new medical marijuana regulatory system.

A proposed dispensary called Top Shelf Meds abuts an Ashland neighborhood.

Carol Kim says the dispensary is separated from her home by a hedge. She says it's ironic that state rules bar dispensaries near schools, but her daughters will come home from school and have to live near a dispensary.

Copyright 2014 The Associated Press.
My town should definitely impose the moratorium for one year -- no more, no less.
My town should NOT impose the moratorium for any length of time. My town should follow current state laws on medical marijuana dispensaries.
I am unsure whether I am in favor of medical marijuana dispensaries in my town, regardless of current state laws.

Business News

Major business and economic events scheduled for Wednesday:

WASHINGTON (AP) -- The lone government economic report expected today comes from the Federal Reserve, which will release consumer credit data for August this afternoon.

Entertainment News


LOS ANGELES (AP) -- First she called the police on Bill Cosby.

Get This


LANSING, Mich. (AP) -- Take this job and -- well, you know the rest.

Science/Tech News


NEW YORK (AP) -- The cost of cybercrime is going up.

  • KTVL :: News - Connect to Congress

    Connect to Congress

  • KTVL :: News - City In Crisis

    City In Crisis

  • KTVL :: News - Drive Safe Mode

    Drive Safe Mode

    Help keep you and your loved ones safe on the road, Pledge against distracted driving and support safety on our roads.
  • KTVL :: News - News10 Special Report

    News10 Special Report

    News10 investigates the issues affecting your town.
  • KTVL :: News - News10 Feed

    News10 Feed

    Headlines in YOUR town.
  • KTVL :: News - Across The Nation

    Across The Nation

    News and information from across the nation.
  • KTVL :: News - Border Crisis

    Border Crisis

  • KTVL :: News - Elections Day

    Elections Day

    Elections are in full swing in your town.Stick with News10 as the ballots continue to be submitted!
  • KTVL :: News - The Great Outdoors

    The Great Outdoors

    Join KTVL News10 for The Great Outdoors, a weekly segment featuring numerous activities related to outdoor living in Southern Oregon and Northern California.
  • KTVL :: News - Health Matters

    Health Matters

    Local Health Care Professionals Providing You With Helpful Health Tips!
  • KTVL :: News - Your Voice. Your Future.

    Your Voice. Your Future.

    As the country faces challenges from federal budget issues to jobs and national debt, your voice is critical to the future.
  • KTVL :: News - Health Care Reform

    Health Care Reform

     The Supreme Court ruling to uphold the Affordable Care Act sparked a new battle. Check here daily for the latest developments, locally and across the country.
  • KTVL :: News - Tasty Topics

    Tasty Topics

    We've all seen News10's Trish Glose tasting food on West Coast Flavors. Now she has more space to talk about food and drink!
  • KTVL :: News - Washington Times

    Washington Times

    Politics, Breaking News, US and World News.
  • KTVL :: News - Reality Check

    Reality Check

    How are your tax dollars being spent? Reality Check tracks whether local, state and federal governments or any groups are using your money wisely...or wasting it.
  • KTVL :: News - Your View

    Your View

    When you see news, share it with us. Your View is the perfect place to share the video and photos you capture your town.
  • KTVL :: News - Closings & Delays

    Closings & Delays

    Check here for closures and delays.
  • KTVL :: News - On The Town

    On The Town

    On the Town highlights local entertainment activities from concerts at the Craterian, to plays, parades and fun runs, for the week and weekends in Medford and counties in Southern Oregon.
  • KTVL :: News - To Your Health

    To Your Health

    Dr. Dan, Monday KTVL News10 at 5 answers your health questions and discusses the latest developments in medecine. If you have questions, find the e-mail address and mailing address at ktvl.com.
  • KTVL :: News - Crime Stoppers

    Crime Stoppers

    Crime Stoppers, Medford, Southern Oregon's answer to crime at ktvl.com. Find a police report of the active case, descriptons of suspects, vehicle information, rewards.

  • KTVL :: News - Rogue Gangs

    Rogue Gangs

    Gangs are a growing concern for police in Southern Oregon and Northern California. News 10 is taking an in-depth look at the issue.
  • KTVL :: News - Links from Our Broadcast

    Links from Our Broadcast

    Links and numbers from our newscasts at KTVL News10, Medford, Southern Oregon's news source. Relevant links to research topics of interest or to contact organizations.

  • KTVL :: News - Consumer Links

    Consumer Links

    Consumer information, links and numbers. Useful links to protect and educate the consumer from the Oregon and California State Departments, the federal government and other Associations.
  • KTVL :: News - Safety Links

    Safety Links

    Safety - links and numbers at ktvl.com. Emergency preparedness plans for Curry, Jackson, and Josephine counties' citizens. Links to California and Oregon Emergency Management Offices, National Safety Council, ...
  • KTVL :: News - Voting Links

    Voting Links

    Links to websites full of information and background material, as well as sites that help you take action.
  • KTVL :: News - Local Links

    Local Links

    Local links for Medford, Southern Oregon and Northern California. Community links for Curry, Josephine, Jackson, Klamath, Lake and Siskiyou Counties, schools, cities, chambers of commerce, Rogue Valley ...

more »

Tonight on KTVL

12:00pm:  News10 at Noon
12:30pm:  The Bold and the Beautiful
  1:00pm:  The Talk
  2:00pm:  Let's Make A Deal
  3:00pm:  Rachael Ray
  4:00pm:  Ellen
  5:00pm:  News10 at 5pm
  5:30pm:  CBS Evening News with Scott Pelley
  6:00pm:  News10 at 6pm
  6:35pm:  Who Wants to be a Millionaire
  7:05pm:  Family Feud
  7:30pm:  Celebrity Name Game
  8:00pm:  The Briefcase
  9:00pm:  Criminal Minds
10:00pm:  CSI: Cyber
11:00pm:  News10 at 11pm
11:35pm:  The Late Show, with David Letterman
12:37am:  The Late Late Show

Complete Schedule »