Fed Expected to Leave Rates Alone This Week

The Federal Reserve, which meets Tuesday, is widely expected to leave key interest rates at 2 percent, which would keep the prime-lending rate for consumers at 5 percent.

The Fed has signaled that its next move on rates is probably up, although the timing is unclear.

Charles Plosser, president of the Federal Reserve Bank of Philadelphia, last month said the Fed probably will need to boost rates "sooner rather than later" even if employment and financial conditions haven't revived.

Richard Fisher, president of the Federal Reserve Bank of Dallas, opposed the Fed's decision in June to leave rates unchanged. He said he preferred a rate increase then to fend off inflation.

Source: The Associated Press, Jeannine Aversa (08/03/08)