In a June 7, 2012, file photo, Federal Reserve Board Chairman Ben Bernanke testifies before the Joint Economic Committee about the nation’s economy on Capitol Hill in Washington. Anticipation is high that the Federal Reserve will announce some new step today to try to rejuvenate the U.S. economy and boost investor confidence (AP Photo/J. Scott Applewhite, File)MARTIN CRUTSINGER
WASHINGTON (AP) – The Federal Reserve, meeting at a time of heightened uncertainty, is expected to provide further support for a slumping U.S. economy. But there is no consensus over what form the added support will take.
Some private economists believe the Fed will launch another round of bond buying in an effort to drive long-term interest rates even lower. The aim would be to spur more borrowing, spending and economic growth.
At the very least, many economists believe the Fed will stress its readiness to do more should the economy weaken further.
The Fed was scheduled to conclude its two-day meeting on Wednesday with the release of a statement outlining any changes in policy. That will be followed by an updated economic forecast from the central bank and then finally a news conference by Fed Chairman Ben Bernanke.