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A Few Clouds
Fed likely to send wait-and-see signal at meeting
WASHINGTON (AP) -- When the Federal Reserve wraps up its two-day policy meeting tomorrow, no major announcements are expected. Instead, officials will likely be giving the plan they adopted six weeks ago a chance to work.
They're expected to affirm their plan to buy mortgage bonds for as long as necessary to make home buying more affordable, and to keep short-term interest rates at record lows through the middle of 2015.
The policies are intended to support an economy that has shown flashes of strength, but isn't growing quickly enough to create many jobs or to increase Americans' income.
The Fed made it clear that it will probably hold rates low even after the economic recovery has strengthened. It was a signal that it will keep intervening until the economy grows quickly enough to reduce unemployment sharply.