What will they do?
The assumption is that with so much worry about what the financial crisis in Europe might do to the global economy, plus recent data showing the U.S. economy softening, the Fed might deliver some tonic now to make investors feel better rather than waiting for an emergency.
The Federal Reserve is meeting this week at a time of high alert -- over the slumping U.S. economy, the aftermath of the Greek elections and the shaky financial markets. Whether that means it will announce any new action when its two-day meeting ends Wednesday isn't certain. But many analysts think the struggles of the U.S. economy and the threats from Europe will compel the Fed to say or unveil something to try to boost confidence.
Expectations aren’t high for Federal Reserve action as the central bank’s policymakers end their two-day meeting Wednesday. Several months of atrocious employment reports have the recovery wobbling but not to the point that would prompt massive intervention, economists say. It isn’t sufficient that job creation slipped precariously in May and consumer confidence followed suit this month. That, coupled with Fed Chairman Ben Bernanke’s hesitant testimony on the Hill earlier in the month has led to projections that they will — at best — take small steps to keep a flailing economy afloat.
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