Fed Chief Bernanke To Discuss Sluggish Economy

WASHINGTON — The Federal Reserve on Wednesday is expected to maintain its resolve to keep borrowing costs at record lows despite growing signs that the economy is strengthening. The Fed will end a two-day meeting with a policy statement and updated economic forecasts. Afterward, Chairman Ben Bernanke will hold a news conference. Most analysts think policymakers will acknowledge the economy’s improvements but leave the Fed’s stimulative policies unchanged.

WASHINGTON — The Federal Reserve on Wednesday is expected to maintain its resolve to keep borrowing costs at record lows despite growing signs that the economy is strengthening. The Fed will end a two-day meeting with a policy statement and updated economic forecasts. Afterward, Chairman Ben Bernanke will hold a news conference. Most analysts think policymakers will acknowledge the economy’s improvements but leave the Fed’s stimulative policies unchanged.

Federal Reserve policymakers met in Washington and decided to leave interest rates where they are. Other changes were announced, though. For the first time, the Fed identified an exact unemployment rate (6.5 percent) at which it would begin to raise interest rates. » E-Mail This     » Add to Del.icio.us

Kimball Corson submits: The Federal Financial Institutions Examination Council, made up of agencies including the Fed and the FDIC, came out the other day and said that: “In the current environment of historically low short-term interest rates, it is important for institutions to have robust processes for measuring and, where necessary, mitigating their exposure to potential increases in interest rates.” The Council’s release urged banks to reasse

Ben Bernanke has been Federal Reserve chairman for some of the most tumultuous years in the Fed's 100-year history. His second, four-year term expires in January. Steve Inskeep talks to David Wessel of The Wall Street Journal about who might succeed Bernanke, and what challenges the new Fed chief might face.

Steve Inskeep talks to David Wessel of "The Wall Street Journal" about who might succeed Ben Bernanke as chairman of the Federal Reserve, and what challenges the new Fed Chief will face. Bernanke has been Federal Reserve chairman for some of the most tumultuous years in the Fed's 100-year history. His second, four-year term expires in January.