Fed to ponder whether bolder action needed

? Federal Reserve policymakers are wrestling with what additional steps — if any — should be taken to strengthen the plodding economy and drive down near double-digit unemployment.

Lots of lively debate is expected at today’s meeting. But few expect any major programs to be unveiled. Instead, many will be looking to see if the Fed offers new clues about the timing of any new aid and what changes in the economy would trigger such a move. To give the Fed extra time for discussions, today’s meeting is scheduled to start around 8 a.m. — earlier than when it has two-day sessions.

There are differing views on the Fed’s main policymaking group — the Federal Open Markets Committee — about what should be done. And some pressure is off after a few mildly positive economic reports showed the pace of layoffs has slowed, shoppers’ appetites to spend has picked up and factory production is growing.

The reports have helped to ease concerns about the economy slipping back into a new recession, giving the Fed Chairman Ben Bernanke and his colleagues a little breathing room.

“We may be emerging from a soft patch,” said Chris Rupkey, economist at the Bank of Tokyo-Mitsubishi, of the recent batch of encouraging reports. “This should allay the concerns of Fed officials.”

Even without action, the Fed could send a stronger signal that it is prepared to act if it appears the economy is in danger of heading into another recession. Doing so would be aimed at boosting public and investor confidence that the Fed will come to the rescue to keep the economic recovery alive. That would reinforce a message Bernanke delivered in late August: the Fed still has some tools to help the economy and will use them if needed.

Investors appeared hopeful Monday that the Fed policymakers would offer some hints. The Dow Jones industrial average closed 145 points up and broader indexes closed higher, extending the September rally into its fourth week.