Analysts are expecting the policy-setting Federal Open Market Committee to maintain the target range for overnight interest rates steady at 0 to 0.25 percent until at least 2010.
An announcement outlining the Fed's policy resolution is expected at around the end of the week at the end of a two-day meeting of the G20, Cig has been led to understand.
Federal Reserve Bank Chairman Ben Bernanke also mentioned earlier in the month that the worst U.S. recession since the Great Depression was "very likely" over, but that the revival would be slow and job creation would be sluggish.
Some factors CIG see’s the fed taking note off:
There have been indications of an economic recovery in data released by the Fed since mid-August, CIG has noted.
- An U.S. economy index measuring prospects grew for a 5th straight month in August to a 1-1/2 year high as stock prices surged, data from a private research group, known to CIG, The Conference Board showed on earlier this week.
- Retail sales have risen 2.7% in July, the largest monthly move forward since January 2006, the Commerce Department made known to among others CIG.
