U.S. Federal Reserve policymakers are expected to hold interest rates steady when they meet this week. But they may tweak their description of the economic outlook to reflect more benign conditions, leaving the path open for future rate rises. 

The Fed raised its policy interest rate for the first time in a decade in December. Similarly, markets wobbled earlier this year on worries about a slowdown in global economic growth and weak U.S. corporate earnings. That led to expectations for additional Fed rates rises to be revised down. 

Many Fed officials remain spooked by the steep stock market drop earlier this year and by weak first-quarter U.S. economic data. Concrete signs of higher inflation and growth may be needed before the Fed's policy committee continues with the projected gradual path toward more normal interest rates.