Fed expected to maintain stimulus path

The Federal Reserve is expected to maintain its resolve today to keep borrowing costs at record lows despite growing signs that the economy is strengthening. The Fed will wrap up a two-day meeting with a policy statement and updated economic forecasts. Afterward, Chairman Ben Bernanke will hold a news conference. Most analysts think policymakers will acknowledge the economy’s improvements but leave the Fed’s stimulative policies unchanged. Bernanke has said in recent weeks that the job market, in particular, has a long way to go to regain full health and still needs the Fed’s extraordinary support. Economists think Bernanke will take note of the economy’s gains. But most foresee no pullback in the Fed’s strategy of keeping short-term rates at record lows and of buying $85 billion a month in Treasurys and mortgage bonds to keep long-term loan rates down. There’s speculation, however, that the Fed might be preparing to dial back its easy-money policies. Such thinking has been fueled by concerns voiced by a few Fed regional bank presidents about the low-rate policies. These include fears that so much money has been pumped into the economy that it could eventually ignite inflation, spark speculative asset bubbles or destabilize markets once the Fed has to start raising rates or unloading its record $3 trillion investment portfolio.