Fed is expected to hold rate steady, warn about recovery risks

09/23/2009 | Reuters

The Federal Reserve will likely keep the overnight lending rate on hold while cautioning that economic recovery faces substantial risks, including increasing unemployment. As the Fed's two-day policy meeting ends today, the central bank is also expected to maintain financial-support programs, but officials might outline the exit strategy for the programs. "Officials think that recovery is far from assured, that inflation may still decline from current levels, and that it's early days yet for the healing in the financial system and markets," wrote Richard Berner, an economist at Morgan Stanley.

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