The fragile postwar economy is expected to gradually grow stronger this year as uncertainties weighing on American businesses and consumers lift.

　　With that hope, Federal Reserve policy-makers probably will keep short-term interest rates at decades-low levels in the months ahead, many economists believe.

　　But while they are predicting the United States will see better economic growth in the second half of this year, economists say it will still take a while for the economy to get back to full speed.

　　"We are in this painfully slow economic recovery. For the past six months, the economy has been bedeviled by many uncertainties - terrorism, Iraq, a run-up in oil prices - but the economy still managed to grow," said Stuart Hoffman, chief economist at PNC Financial Services Group.

　　By leaving borrowing costs low, businesses and consumers might be motivated to invest and spend more, helping to energize the listless economy.

　　Fed Chairman Alan Greenspan last week expressed cautious optimism about the economy's prospects now that the war is over. He said the economy is "positioned to expand at a noticeably better pace," but the timing and the extent of that improvement remain uncertain.

　　There have been some encouraging signs. Energy prices, which had risen sharply on war tensions, have recently retreated; the rollercoaster stock market has stabilized; and consumer's confidence in the economy rebounded in April.

　　But there's still reason for concern. Businesses remain wary of big commitments in capital spending and hiring, major forces restraining the economy's recovery. And, the job climate is worsening, which could make consumers - the main force keeping the economy going - more cautious.

　　The nation's unemployment rate jumped to 6 percent in April as businesses cut jobs for the third straight month. The economy has lost one-half million jobs in the last three months, a decline usually associated with recessions.

　　President George W Bush wants Congress to approve another round of tax cuts which he says would boost the economy.

　　Some economists believe the jobless rate will creep higher to around 6.3 to 6.5 percent later this year, even if the economy improves a bit. The economy grew at a tepid rate of 1.6 percent in the first three months of 2003.

　　Most economists believe Greenspan and his Federal Open Market Committee colleagues will continue to hold the federal funds rate at a 41-year low of 1.25 percent at their meeting later.