Deals with us Federal Reserve Chairman Ben Bernanke independent Community Bankers of America (ICBA) 2011 National Convention in San Diego, California, 23 March 2011.
Credit: Reuters/Mike blakibi Mark felsenthalWashington | Wednesday, April 27, 2011 1: 09 am EDT
Washington (Reuters)-Federal Reserve Chairman Ben Bernanke on Wednesday will likely use his first briefing on monetary policy strives for patient approach to Central Bank withdrew from extensive support for the US economy.
After the Fed policy meeting for two days, will face the first Bernanke told reporters at a press conference the Chairman of the regularly scheduled Federal Reserve Central Bank 97 years.
Expected to use this occasion to magnify the view of the Central Bank that the economy still needs the support of the monetary policy of the Fed. Challenging that consensus in a number of officials fed hawkish who worry us Central Bank may wait long to raise interest rates.
The Fed is behind other central banks to tighten financial conditions. The European Central Bank reference rate earlier this month, a move that helped the greenback hit level 16 months against the euro on Tuesday.
In contrast to the Fed's policy setting "the Federal open market Committee", because at approximately 12: 30 pm (1630 GMT), expected to continue to 600 billion dollars of bond-buying program through to its end in late June. Also expected to reaffirm that it will remain unusually low interest rates for "long".
"FOMC meeting will break new ground in terms of content, but also provide a new place to dovish Bernanke in control," said Eric green TD Securities.
Statement of Federal Reserve Bernanke was overshadowed by the historic press conference at 2: 15 pm (1815 GMT).
Balancing Act Bernanke
Journalists are likely to press Bernanke must go beyond the Central Bank statement to see more pithy on when and how the Fed might start tightening policy.
The Fed cut short-term reference rate to near zero in December 2008, and then purchased $ 1.4 trillion in long-term debt and mortgage-related securities to Treasury to pull the economy out of a deep economic recession.
When restoring flagged last year, Federal Reserve Bank in the latest round of buying bonds.
Fed officials defended the consensus-voted as Vice President Janet Yellen, New York Fed President William Dudley-cash support as important drugs economy with unemployment at 8.8 per cent.
While Bernanke is unlikely to present any timetable for rate rise, he has insight into the latest thinking in fed on how travel responsible for tightening policy.
Last year, the first step towards the exit is likely to be high. However, recently some officials have urged the sell off bonds.
Statement by Central Bank officials are expected to see recovery on solid ground, even if growth in the first quarter has been slow.
Meanwhile, the Fed is expected to reiterate concerns over rising unemployment and reaffirm that upward pressure on inflation from rising commodity prices prove fleeting.
This range would give the Federal Reserve to continue feeding recovery with easy monetary policy.
"Baseline expectations for fed would increase rates for a long time," said Michael people from Barclays Capital. "They just don't want to brikomit and limiting flexibility. "
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