As Fed ends meeting, many expect bold action

WASHINGTON (AP) — The Federal Reserve ends a two-day meeting today with expectations high for some new action to jolt the lackluster U.S. economy.

Many investors hope the Fed will take the bold step of launching a third bond-buying program. The goal would be to try to lower long-term interest rates and spur borrowing and spending.

Further bond purchases could also boost stock prices. Higher stock prices increase wealth and typically lead individuals and businesses to spend more.

Some economists think the Fed might put off any new bond buying but extend its timetable for any increase in its benchmark short-term rate. The Fed's current target for any rate increase is late 2014 at the earliest.

Fed officials began their discussions Wednesday and will conclude with an announcement Thursday afternoon. The Fed will later release updated projections for economic growth, unemployment and inflation. And Chairman Ben Bernanke will hold a news conference.

The Fed is under pressure to act because the U.S. economy is still growing too slowly to reduce high unemployment. The unemployment rate has topped 8 percent every month since the Great Recession officially ended more than three years ago.