Fed to provide clues on US recovery

0 Comments | AFP, June, 2009

WASHINGTON, June 23, 2009 (AFP) — Federal Reserve policymakers opened a two-day meeting Tuesday closely watched by financial markets for clues on prospects for recovery from the economy's prolonged recession.

Economists expect the Federal Open Market Committee to maintain its near-zero interest rate policy and to reaffirm a commitment to keep pumping money into the economy to battle recession.

The panel led by chairman Ben Bernanke was due to release its statement at the end of the meeting Wednesday around 1815 GMT.

Analysts say that although no change in policy is expected, the Fed statement will be critical to the central bank view on the recovery and when it may end its vast stimulative effort some call "quantitative easing."

"Supporting a weak economy and...