WASHINGTON (RushPRnews) 03/18/09-Policy makers at the U.S. central bank are meeting Wednesday to discuss steps they hope will boost the struggling U.S. economy, but they are expected to make no change to already low interest rates.
The Federal Reserve is expected to keep a key interest rate target at its historically low range of 0 – 0.25 percent. Economists say Federal Reserve officials are considering new efforts to help credit markets, including the possibility of buying long-term U.S. Treasury bonds to ease the costs of borrowing for consumers and businesses.
The credit market is a key to economic growth, but it stalled when the U.S. housing market collapsed.
President Barack Obama travels to California Wednesday for two days of public meetings to gain support for his economic policies.
Mr. Obama has challenged critics of his budget proposals to offer constructive alternatives, saying the nation needs good ideas rather than political bickering.
The president’s $3.6 trillion budget has been attacked by opposition Republicans for raising the federal deficit by spending and borrowing.
Mr. Obama said it is crucial to get the economy going again in the short term, and make the long-term investments needed to cut medical costs, improve energy supplies, and boost education.
Some information for this report was provided by AFP, AP and Reuters.