Tuesday,  March 19, 2013 • Vol. 14--No. 243 • 27 of 33 •  Other Editions

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convulsed the Arab world for the past two years and shaken many of the strong but imperfect pillars of stability on the planet's most politically volatile patch of land.
• And the few constants are hardly cause for cheer: a moribund Israeli-Palestinian peace process that remains mired in mutual distrust and recrimination, an Iran that seemingly inches closer to nuclear weapons capability despite intensified international sanctions, and the ever-growing threat from extremists.
• At the same time, Obama's 2012 re-election has changed his political calculus. Having run his last race as a political candidate, he is no longer beholden to the whims of voters. His sights appear set on building a legacy that, at least in the short term, is focused not on foreign policy but on the domestic issues that now drive the agenda in Washington.
• Thus, U.S. officials have set expectations low for the trip. No new plan to bring Israel and the Palestinians back to the negotiating table. No big boost in assistance to the struggling Palestinian Authority. No new strategy for dealing with the chaos in Syria. No new outreach to Muslims like the one that was the centerpiece of his June 2009 visit to Cairo.
• ___

Fed is expected this week to stick to low-rate policies despite a strengthening US economy

• WASHINGTON (AP) -- The U.S. economy is strengthening on the fuel of more job growth, rising home prices and solid retail sales. Just don't expect the Federal Reserve to let up in its drive to keep stimulating the economy with record-low interest rates.
• Not yet, anyway.
• That's the view of economists as Fed policymakers hold a two-day meeting that starts Tuesday. On Wednesday, the Fed will issue a policy statement and update its economic forecasts, and Chairman Ben Bernanke will hold a news conference.
• All of which will likely reinforce Bernanke's stated view that the job market, in particular, has a long way to go to full health and still needs the Fed's extraordinary support.
• The unemployment rate, at 7.7 percent, remains well above the 5 percent to 6 percent range associated with a healthy economy. The Fed has said it plans to keep short-term rates at record lows at least until unemployment falls to 6.5 percent, as long as the inflation outlook remains mild. And it foresees unemployment staying above 6.5 percent until at least the end of 2015.

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