FOMC set to hold target rate: Experts

Most economists and market participants believe that the Federal Open Market Committee or the FOMC will keep its target rate unchanged at 2%, even if inflationary pressures remain in the US economy. However, experts say Fed Chairman Ben Bernanke will have to give the economy another chance as it remains fragile. 

“I don't think the Fed is going to seriously go after inflation. I think they have to talk tough. Because they have to convince people and managers they can't pass through wage increases,” said John Manley, Citi Smith Barney.