Fed to keep interest rates low for 'considerable period'

THE Federal Reserve, mindful the US economy is struggling to add jobs, will repeat a pledge to leave interest rates low for a "considerable period" at its meeting on Tuesday and Wednesday, according to a survey of the majority of Wall Street's largest bond-trading firms.

"They're going to keep that phrase, 'considerable period,' for some time," said Edward McKelvey, a senior US economist at Goldman, Sachs & Co in New York. "I'm more convinced of that now because of the payroll report," which showed job growth increased by only 1,000 in December.

The economy has shed 2.32 million jobs since President Bush took office in January 2001, including 1.07 million since the current economic expansion began in November 2001. Unless the economy makes up the gap by Election Day, Bush would become the first president since Herbert Hoover to end a term with fewer jobs than when he started.