AC

Could the presidential election prompt the Federal Reserve to put off a possible new initiative to jolt the sluggish economy? A Federal Reserve policymaker emphatically says that politics is playing absolutely no role in its deliberations. But some economists say a desire to steer clear of the political fray could tip a close decision on whether to push down interest rates in favor of waiting until after the race is over. And history shows that Fed members at least have had to face questions about whether their actions were partly shaped by presidential politics. In a highly anticipated speech Friday, Fed Chairman Ben Bernanke built a strong case for taking steps to stimulate the recovery, calling the stagnant labor market a "grave concern" and adding that the Fed "will provide additional policy accommodation as needed." Many economists say the Fed will vote at its mid-September meeting to buy more Treasury bonds or mortgage-backed securities to lower long-term interest rates....