Zero job growth in US: Federal Reserve may announce another round of stimulus - Economic Times

News that the economy added zero jobs in August raises the chances that the Federal Reserve will announce another round of stimulus when it meets in two weeks, Fed-watchers say, most likely by pushing down long-term interest rates.

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Cheaper credit could give the economy a boost - and prompt more hiring - by encouraging more borrowing, so companies and consumers have more money to spend. But with interest rates already low, it isn't certain how much this might help the economy, though proponents of more action by the Fed argue that this is better than not trying. The central bank has already undertaken a spate of unprecedented measures to reinvigorate growth, including two large rounds of asset purchases. At its August meeting, many Fed policymakers expressed interest in engaging in further easing measures but could not agree what to do.

Zero job growth in US: Federal Reserve may announce another round of stimulus - Economic Times