Federal Reserve officials are preparing to take new action to spur employment and growth, the Wall Street Journal's Jon Hilsenrath reports. The central bank is searching for a solution that would reinvigorate the economy but not cause inflation, and it could decide on a course of action at its meeting on July 31 and Aug. 1, or wait until September.

In interviews and public comments, several Fed officials have expressed frustration over the sluggish recovery. Even policy makers who previously opposed more stimulus have signaled a desire to act. Fed Chairman Ben Bernanke has suggested various methods, such as pushing interest rates even lower, new programs for buying securities, or using the discount window to encourage banks to make new loans.

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