WASHINGTON (AP) — The Federal Reserve is widely expected to stay the course today on its bond-buying economic stimulus efforts amid continued uncertainty about the economy's health and the government's budget fight.
That expectation marks a reversal from just six weeks ago, when almost everyone expected the Fed to start trimming its $85 billion in monthly bond purchases. It chose not to and since then, a 16-day partial government shutdown shaved an estimated $25 billion from economic growth this quarter. A batch of tepid economic data pointed to a still-subpar economy.
The bond buying is intended to keep long-term interest rates low to help the economy rebound from the Great Recession.
The Fed is to announce its decision in a statement today after a two-day policy meeting.
Many analysts now predict the Fed will maintain the pace of its bond purchases into next year.