WASHINGTON (Reuters) - The U.S. Federal Reserve is expected to hold interest rates steady at a meeting this week and suggest it is in no rush to raise them, even as it acknowledges some troubling signs on the inflation front.Surging oil prices and lingering financial-sector weakness are clouding some hopeful signs that the U.S. economy has weathered the worst of a credit crisis and is poised to work its way through a period of sluggishness with the help of low interest rates and the government's fiscal stimulus handouts.
While record-high oil and gasoline costs risk upsetting the Fed's forecast for slowing inflation, officials also remain concerned that the economy has yet to find solid footing.
When they announce their rate decision at the end of a two-day meeting on Wednesday, Fed policy-makers are expected to voice discomfort on the inflation front, but stop short of signaling a near-term rate increase was imminent.
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