Federal Reserve Mulls Pulling Back on Stimulus Efforts

WASHINGTON  -- The Federal Reserve is meeting this week and is likely to be thinking about whether to start pulling back on stimulus efforts.

The officials began meeting Tuesday and will issue a policy statement Wednesday. It's not known whether they will signal their timing and strategy to reverse course. The big challenge they face is when and how to do so.

The Fed is all but certain to leave its key bank lending rate, which affects consumer loans, at a record low near zero and may do so for an extended period -- viewed as at least six months.
This all comes as prospects brighten for another term for Chairman Ben Bernanke.

The Senate has scheduled a vote Thursday on Bernanke's confirmation for a second term. Bernanke appears to have solidified his support in the Senate after the White House stepped in to quell rising opposition late last week.