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Fed action on interest rates unlikely

Despite signs the U.S. economy may be turning around, the Fed appears to be in no mood to tinker with interest rates.

** FILE ** In this April 3, 2008 file photo, Federal Reserve Chairman Ben Bernanke testifies on Capitol Hill in Washington. With inflation moving higher on its worry list, the Federal Reserve held interest rates steady Wednesday, June 25, 2008, ending nearly a year of cuts to bolster the economy, and hinted that the next direction for rates could be up. (AP Photos/Susan Walsh, File)

WASHINGTON (AP) - Despite signs the U.S. economy may be turning around, the Fed appears to be in no mood to tinker with interest rates.

As Fed policy makers wrap up their two-day meeting in Washington today, it's expected they'll leave the Federal Funds Rate at near zero, so as not to poison the emerging recovery.

If that occurs, the result would be no upward pressure on the prime lending rate, used to determine interest rates on home equity loans, certain credit cards and other consumer loans. They're now at about 3 1/4 percent, the lowest in decades.

It's also widely expected the Fed will not move to raise interest rates for the rest of the year.


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