Fed Reserve could be moving to more bond buying

WASHINGTON (AP) — The Federal Reserve appears to be moving toward announcing some new step to try to energize the troubled U.S. economy. The question is whether it will do so after its policy meeting this week.

Probably not, many economists say.

The U.S. economy grew at an annual rate of just 1.5 percent from April through June, less than the 2 percent rate in the first quarter. But many analysts say the economy hasn't slowed enough to compel the Fed to announce further help immediately.

Still, Fed officials have signaled their concern about weakening job growth and consumer spending, which have brought the economy closer to a standstill.

In June, Americans spent no more in June than they did in May, even though their income grew 0.5 percent, the Commerce Department said today.

Chairman Ben Bernanke has said the Fed is prepared to take further action if unemployment stays high.