Fed begins meeting, expected to keep rates steady

US Federal Reserve policymakers began a final 2002 policymaking session today amid universal expectations they will keep interest…

US Federal Reserve policymakers began a final 2002 policymaking session today amid universal expectations they will keep interest rates steady after last month's bold half-percentage-point cut.

Analysts said Federal Open Market Committee (FOMC) members will prefer to monitor the economy's performance over the vital Thanksgiving-to-Christmas holiday shopping season, gauging the durability of consumer spending and reserving policy action until sometime in 2003.

The policymaking FOMC began meeting at 2 p.m. (Irish time) and a decision was expected to be announced later this evening.

Financial markets already were anticipating no rate action,but stocks opened moderately higher today after postingdeclines yesterday.

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While recent days have been filled with drama on theeconomic front, the shake-up to the Mr Bush administration economyteam and expectations of a massive new fiscal stimulus packagewere unlikely to spill into the Fed boardroom.