At the same time, exports and business investment are cooling as global demand slows and companies hold back in the face of the so-called fiscal cliff, the $607 billion of tax increases and spending cuts due to take effect early next year unless Congress acts.
Economic output would shrink by 0.5 percent next year, and joblessness climb to about 9 percent if the fiscal cliff isn't averted, according to the Congressional Budget Office. The Fed's next meeting, on Dec. 11-12, will take place in between the presidential election and before the onset of the cliff.
The economy has been at the heart of the campaign for the White House between President Barack Obama and former Massachusetts governor Mitt Romney, with both arguing they will best be able to steer the $15.6 trillion economy. Romney has said he would replace Bernanke at the end of his term in January 2014.
The race is close nationally, with the most recent polls from the Washington Post/ABC News, the Wall Street Journal/NBC News and CBS News all showing the candidates tied or separated by a difference that's within the margin of error.
The Standard & Poor's 500 Index rose to a 2012 high on Sept. 14, the day after the Fed announced QE3. Since then the benchmark has dropped 3.6 percent through yesterday as companies including DuPont Co. and 3M Co. reported earnings that spurred concern the economy is weakening.
The yield on the 10-year Treasury note rose to 1.77 percent yesterday, near its 1.76 percent closing level on the day before the last FOMC meeting. The yield fell to a record low 1.38 percent in July.
DuPont, the most valuable U.S. chemical maker, said yesterday it will eliminate 1,500 jobs after posting a smaller- than-estimated third-quarter profit, while 3M, the manufacturer of products including Scotch tape and dental braces, reduced its full-year forecast as a recession in Europe and slowing Asia growth crimped sales.
Of the 187 companies in the S&P 500 that reported results, 60 percent missed analysts' revenue estimates, according to data compiled by Bloomberg.
Demand for U.S. durable goods other than transportation equipment unexpectedly dropped in August for a third consecutive month, signaling that slowdowns in business investment and exports have curbed growth.
Orders for goods meant to last at least three years, excluding airplanes and automobiles, fell 1.6 percent in August, the Commerce Department said last month. U.S. manufacturing expanded in September after three months of contraction, according to the Institute for Supply Management.