Federal Reserve policymakers are expected to hold interest rates at a 41-year low when they meet tomorrow following the sudden White House shake-up last week triggered by concern over the US economy.
Market pressure for an interest rate cut has eased after the resignations of Treasury Secretary Paul O'Neill and chief economic adviser Lawrence Lindsey, said Moody's Investors Service chief economist John Lonsky.
Investors now believe 'more fiscal stimulus will take the place of more monetary stimulus', he said.
A new economic team will sell President George W Bush's plans for a stimulus package including permanent tax cuts to ramp up economic growth two years ahead of presidential elections, experts said.
Federal Reserve chairman Alan Greenspan and his colleagues on the Federal Open Market Committee (FOMC) have already done enough, analysts said.
