Fed weighs whether economic revival program should be slowed
WASHINGTON (AP) -- The health of the economy is under examination by the Federal Reserve, as policymakers today conclude a two-day policy-setting session.
Economists predict the Fed won't take any major new actions aimed at helping the economy. But with signs that the economy may be improving, policymakers are considering whether some program intended to drive down rates on mortgages and other consumer debt should be slowed down. The worry is that the efforts could ignite inflation later on.
The Fed is expected to keep its key bank lending rate at a record low between zero and 0.25 percent and economists see it remaining there through the end of this year.
That would keep prime lending rates, used by banks to peg rates on home equity loans, certain credit cards and other consumer loans, at around 3.25 percent.