Fed expected to take further step toward ending bond buying
Published on Apr 30, 2014 1:21 PM
WASHINGTON (Reuters) - The Federal Reserve is expected to cut its bond-buying program by a further $10 billion on Wednesday as signs mount that the United States economy is starting to pull away from its winter slowdown.
Janet Yellen's second policy-setting session as Fed chair should confirm the central bank's plan to wind down its purchases of Treasuries and mortgage-backed securities by year-end - a sign of its confidence the economy is gaining traction.
The reduction likely to be announced at the end of the Fed's two-day meeting would bring the total monthly purchases down to US$45 billion, split between US$25 billion of Treasuries and US$20 billion of mortgage-backed securities.
But analysts expect little more out of the session as the Fed enters what may be a sort of holding pattern as it transitions from an era of crisis response to one of more normal monetary policy.
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