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August 1st, 2012
08:10 PM ET

Who will rescue the U.S. economy if the Fed says no stimulus? Congress?

CNN's Erin Burnett talks to Senator Pat Toomey  (R-PA) about what Congress is doing to avoid the fiscal cliff. Members of Congress are devoting most of their time voting on extending Bush-era tax cuts that will not go anywhere in either house of the federal government.

The Federal Reserve announced Wednesday that it will stick to its current polices - no new stimulus. So, as America braces for $1.2 trillion in across the board cuts, what will Congress do to avoid the fiscal cliff?

OutFront tonight: Senator Pat Toomey (R-PA)

Fed stands put as economy 'decelerates'

The Federal Reserve decided to stick to its current policies Wednesday, but indicated the United States economy is slowing and that more action could be in the cards soon.

Since Fed policymakers last met six weeks ago, data has shown the recovery slowed and hiring remained tepid. The economy grew at a paltry1.5% annual rate in the second quarter, and employers added just 80,000 jobs in June.

The central bank said that economic activity "decelerated" in its policy statement released Wednesday afternoon and reiterated its former guidance, forecasting it is likely to hold interest rates near "exceptionally low levels" at least through late 2014.

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Filed under: Economy • Politics
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