WASHINGTON: The Federal Reserve meets this week with the delicate task of curbing a surge in expectations that it is ready to starting raising interest rates, without snuffing out crucial optimism on the economy.

Policymakers are also likely to allow a controversial scheme to buy $300 billion of longer-dated Treasuries to end on schedule in September. But they may discuss extending a separate program to support the flow of credit to consumers and business, with an eye on propping up commercial real estate.

The policy-setting Federal Open Market Committee (FOMC) will meet today and tomorrow, and central bankers are expected to hold the overnight fed funds rate in a range between zero and 0.25 percent. A much better-than-expected July US employment report boosted investor speculation on Friday that the Fed would begin to tighten monetary policy early next year, but economists said this judgment was very premature.