No Fed rate shift seen

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Last week s November jobs report showed a strong economy, even though there is weakness manufacturing and construction, with "no sign of a widening slowdown," as Bear Stearns analyst David Malpass wrote after employment figures were released Friday.

With continued signs of economic health, Wall Street doesn t expect the Federal Reserve to tinker with key interest rates at its last meeting of the year Tuesday.

Economists say the Fed appears to have been able to rein in economic growth and keep inflation low, yet has so far avoided pushing the nation into recession.

With an eye on taming inflation, the Fed raised the federal funds rate 17 straight times from mid-2004 through June this year, but since August it has left rates unchanged.

Most observers think that's likely to be the case again Tuesday, as the central bank continues to gauge the impact of its actions.

Of more concern may be the Fed's statement after the meeting, which could indicate what to expect in coming months. Many economists believe the Fed s could return to cutting rates around June 2007.