Michelle Fleury
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Can the Federal Reserve help the US?

1 August 2012 Last updated at 11:33 BST

With the US recovery faltering, all eyes are on America's central bank.

The Federal Reserve is due to wrap up a two day interest rate setting meeting on Wednesday.

Financial markets would like the Federal Reserve to announce another round of asset purchases - also known as quantitative easing - to stimulate the economy.

But with the slowdown weighing heavily on President Barack Obama's hopes of re-election, such action would be politically controversial.

Michelle Fleury reports from New York.