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Fed likely to skip fresh stimulus

Fed likely to skip fresh stimulus
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Analysts say the Federal Reserve is likely to hold off from fresh stimulus measures for the US economy at its meeting today.

The feeling is that Ben Bernanke and the other central bank policymakers will continue to talk about how they can achieve more from the monetary easing they have already put in place.

Even less likely is the prospect of a new round of bond buying, although many analysts think that will happen eventually too.

There are some encouraging signs of recovery in the US but worries about the effects from Europe’s problems.

Recent reports about the US economy point to some improvement. The jobless rate tumbled 0.4 percentage point to 8.6 percent in November and consumer spending rose as the holiday shopping season started.

The world’s largest economy expanded at a 2.5 percent annual rate in the third quarter, the fastest pace in a year.

Forecasters hope growth will top three percent in the current quarter.

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