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Fed ready for more stimulus?

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Fed ready for more stimulus?

Fed ready for more stimulus?
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The financial markets are betting that the Federal Reserve is about to take action to stimulate the lacklustre US economy.

A growing number of economists believe Fed Chairman Ben Bernanke and his fellow policymakers will decide at their current meeting to go for a third round of purchases of US government bonds.

By printing money to buy bonds, the US central bank would lower borrowing costs and spur a stronger economy.

Reuters asked 51 economists for their views. Of those who put the chances of quantitative easing, or QE3, at greater than 50 percent, 39 expected the Fed to act this week.