By Frank Quaratiello and Ira Kantor | The Boston Herald | September 8, 2012
The weak August jobs report will likely force the Federal Reserve to launch a third round of “quantitative easing,” basically creating new money to prop up the economy, even if the central bank doesn’t explicitly tip its hand at next week’s meeting.
The country’s unemployment rate dropped to 8.1 percent, but only 96,000 new jobs were added last month, 45,000 fewer than in July. The jobless rate declined mainly because 368,000 Americans gave up looking for work.
“If last night was the party, this morning is the hangover. For every net new job created, nearly four Americans gave up looking for work entirely,” GOP presidential nominee Mitt Romney said, contrasting the jobs report to this week’s festive Democratic National Convention.
Economists said the lackluster numbers will make November’s election a tighter race, even after positive news from Europe sent the financial markets soaring Thursday. Read More