Wall Street stocks rose in cautious trading yesterday before today's key Federal Reserve meeting on inflation and interest rate policy.

The Dow Jones industrial average rose 34.21 points to close at 7,228.88, after recovering steadily from a 22 point morning fall.

Trading was predictably quiet, with few investors making big bets in advance of the Fed meeting.

On Friday, stocks pulled back sharply, slicing nearly 140 points off the Dow, as some surprisingly robust economic readings forced investors to reconsider their recent optimism that the Fed will not boost the central bank's lending rates to ease inflationary pressures.

In late March Fed policy makers moved to slow consumer demand by raising a key short term lending rate.

The rate hike spurred a sharp sell off in the markets amid fears the Fed might act even more aggressively, hurting company profits.