Investment Watch

Confer, and bless the status quo. That’s what the Federal Reserve Board is expected to do Tuesday, when Chairman Alan Greenspan convenes a regular policy-setting meeting. Although the U.S. economy’s strength has surprised a lot of people this spring, most analysts believe the Fed will be content to leave official short-term interest rates where they are for now, rather than raise rates to slow the economy. The Fed’s key short-term interest rate, the so-called federal funds rate, is 5.25%. Even if the Fed holds steady, however, savers may continue to see higher yields on short-term certificates of deposit: On average, banks have been steadily boosting CD yields since February to compete with higher bond yields.