Fed begins meeting with new stimulus expected

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WASHINGTON (AP) — Federal Reserve policymakers begin a two-day meeting today, and many analysts expect more stimulus from it.

Diane Swonk (swahnk), chief economist at Mesirow Financial, says the Fed is widely expected to announce steps to prop up the ailing U.S. economy, because the economy "really begs for more stimulus," and only the Fed can provide it. She says she expects "a major move by the Federal Reserve."

Many analysts expect the Fed to unveil a new bond-buying program to lower long-term interest rates and encourage borrowing and spending.

Other economists think the Fed is more likely to keep short-term interest rates near zero for a longer time, perhaps through 2015. It currently plans to do so through late 2014.

The decision will be revealed tomorrow.

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