Fed seen signaling don't rush out

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 felsenthal

Washington | Thursday, April 26, 2011 6: 31 pm EDT

Washington (Reuters)-"the Federal Reserve began a two-day meeting Tuesday that they may appear in no hurry to reduce massive support for economic recovery.

The Central Bank is expected to stress that ending its $ 600 billion for the purchase of bonds by the end of June, and renews its commitment to preserve borrowing costs trashed for "long".

Investors now waiting to hear what federal reserve after June. Suggested tags from policymakers so far mostly he'll wait and see how the fragile economic recovery in the United States before tightening monetary conditions.

The Fed is expected to release his bostmiting at 12: 30 pm and Wednesday.

Chairman Ben Bernanke will hold a press conference the first Chairman of the regularly scheduled fed at 2: 15 pm ET. Expected to last about 45 minutes.

Mark Chandler, head of global currency strategy at Brown Brothers Harriman in New York "investors are unlikely to learn from Bernanke at the Fed will tighten, doubtful that knows he is himself."

The Fed has launched another program to purchase bonds in November last year and failing recovery support after cutting interest rates to near zero in December 2008 I bought $ 1.4 trillion in long-term securities to derail the economy recession.

Fed officials say has helped their efforts to revive growth, point to business faster, as well as stock gains.

But the program has raised criticism from some members of Parliament of the United States and emerging economies such as China and Brazil who blamed bad inflation.

Financial markets expect the Central Bank in financial conditions tightened in haste because the rate of unemployment was 8.8 per cent in March.

Furthermore economic growth in the first three months of this year is expected to slow to an annual dividend of 2.0 per cent or less. Data on growth in the first quarter of Thursday's decision.

Prompted speculation the Fed raising interest rates until sometime next year the depreciation of the dollar which reached level 16 months against the euro on Tuesday. European Central Bank reference rate earlier this month, the first increase since the financial crisis.

Government bond prices rose Tuesday as traders inflation wasn't judged alarming enough to pay the Fed raising interest rates and betting on other buyers will fill the void once the Central Bank purchases and ends.

And in the inaugural fed another change to make themselves more transparent to issue quarterly forecasts for growth, employment and inflation as the press conference begins.

So far, the forecasts were released after each meeting together with minutes of discussions just three weeks.

Economists will look to see whether the Fed has bumped up their expectations for inflation, which could be a sign that grow nervous just over oil price hike costs paid for a wide range of goods and services. \0

( Neil stimbelmanedit)

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