WASHINGTON (Reuters) - The Federal Reserve on Wednesday is expected to reaffirm its intention to keep U.S. interest rates at ultra-low levels for a long time to support the economy, even as signs of recovery accumulate.
From: www.reuters.com
By Mark Felsenthal
WASHINGTON (Reuters) - The Federal Reserve on Wednesday is expected to reaffirm its intention to keep U.S. interest rates at ultra-low levels for a long time to support the economy, even as signs of recovery accumulate.
The U.S. central bank cut overnight rates close to zero percent last December and it has vowed to keep them there for an "extended period." While some analysts think the Fed could start to tip-toe away from that pledge, most say it is too soon.
"Once they start removing that, that's a real sign that they intend, within six months, to start raising rates," said Deutsche Bank economist Torsten Slok. "But it's just premature, looking at the economic numbers, to arrive at that conclusion."
The Fed will issue a statement around 2:15 p.m. EST at the conclusion of its two-day policy meeting on Wednesday. Analysts expect the Fed to nod to modestly encouraging signs suggesting the economy is gaining strength, but still expect a cautious tone on policy.