WASHINGTON -- When the Federal Reserve holds a policy meeting today and Wednesday, it's widely expected to adopt some new step to boost the economy. The question is, what it will be.
Whatever the Fed does will likely be intended to drive down long-term interest rates to encourage borrowing and spending and lift stock prices.
A look at the Fed's options:
Anticipation that the Fed will adopt some form of Operation Twist, combined with sour economic news, has helped push down the rate on the 10-year Treasury note to 1.95 percent. In July, the rate exceeded 3 percent.
That commitment could reassure investors that rates would remain low well into the future. But this idea would likely ignite opposition from some Fed regional presidents who worry that Fed policies have already raised the risk of high inflation once the economy gains momentum.