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Fed likely to stick to low-rate message this week

4:01 AM, Jan 29, 2013   |    comments
Federal Reserve Chairman Ben Bernanke
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WASHINGTON (AP) -- Analysts think the Federal Reserve won't be changing its tune when it meets this week.

It's likely to affirm a message it intends to help lift the economy: that consumers and businesses will be able to borrow cheaply well into the future - even after unemployment has dropped sharply.

Last month, the Fed signaled for the first time that it will tie its policies to specific economic barometers. It said that as long as the inflation outlook is mild, it could keep short-term rates near zero until unemployment dips below 6.5 percent from the current 7.8 percent.

The Fed predicted that could take until the end of 2015.

Though some key sectors of the economy are improving, analysts think the Fed still feels more time is needed for low rates to spur borrowing, spending and economic growth.

Associated Press

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