Fed expected to stay the course

WASHINGTON (AP) - Renewed questions about the economy's health and uncertainty surrounding the government's budget fight will likely lead the Federal Reserve today to maintain the pace of the stimulus it's supplying to the economy.

That expectation marks a reversal from just six weeks ago, when almost everyone expected the Fed to start trimming its $85 billion in monthly bond purchases. The bond buying is intended to keep long-term interest rates low to help the economy rebound from the Great Recession.

The Fed is to announce its decision in a statement after a two-day policy meeting.

The central bank surprised investors and economists at its last meeting in September when it chose not to reduce its bond buying. Since then, a 16-day partial government shutdown shaved an estimated $25 billion from economic growth this quarter. And a batch of tepid economic data pointed to a still-subpar economy.

Now, few think the Fed will reduce its stimulus any time soon. Many analysts now predict the Fed will maintain the pace of its bond purchases into next year.

"I think March is now the earliest that any reduction in bond purchases will happen," said Diane Swonk, chief economist at Mesirow Financial.

By then, Fed members expect to have seen several months of stronger job growth. They also expect Congress to have resolved its budget impasse.