Fed seen signaling no rush for the exit

WASHINGTON (Reuters)-the Federal Reserve began a two-day meeting on Tuesday that will probably show that there is no hurry to scale back its massive support for the economic recovery.

The central bank is expected to confirm that it will use its $ 600 billion bond-buying program by the end of June to complete and renew its commitment to rock-bottom borrowing costs for "an extended period of time."

Investors are now waiting to hear what the Fed will do after June. Signs from policy makers so far usually have proposed it will wait and see how the fragile economic recovery of the U.S. develops before tightening monetary conditions.

The Fed is expected to release her other statement at 12: 30 pm ET on Wednesday.

Chairman Ben Bernanke will then the first-ever regularly scheduled press conference by a Fed chief at 2: 15 pm ET. It is expected to last about 45 minutes.

"Investors are unlikely to learn from Bernanke when the Fed will tighten up if it is doubtful that he himself knows," said Marc Chandler, global head of currency strategy at Brown Brothers Harriman in New York.

The Fed the newest bond-buying program launched in November last year a flagging recovery of the aid, have already cut interest rates to almost zero in December 2008 and bought $ 1.4 trillion in securities in the longer term to pull the economy from recession.

Fed officials say their efforts have helped buoy growth and point faster hiring by both companies and stock market profits.

However, the program has drawn criticism from some American legislators and emerging economies such as China and Brazil, which it blamed for fueling inflation.

Financial markets anticipate that the central bank will be in no hurry to tighten financial conditions because the jobless rate in March stood at 8.8 percent.

Moreover, economic growth in the first three months of the year, expect to have slowed to one percent on an annual basis 2.0 or earlier. Data on first quarter growth was due on Thursday.

Expectations that the Fed no interest until sometime next year increase will have pushed down the value of the dollar which hit a 16-month low against the euro on Tuesday. The European Central Bank raised its benchmark rate earlier this month, the first walk, since the financial crisis hit.

US Government bond prices rose on Tuesday as traders judged inflation was still not worrying enough to the Fed to increase and the deployment of that other buyers would fill the void as the central bank buy is terminated.

As the inaugural News Conference, the Fed will make another change to make themselves more transparent through the issuance of quarterly Outlook for inflation, growth and employment as the news conference begins.

So far, the predictions released only three weeks after each meeting together with minutes of the discussions.

Economists will be looking to see if the Fed up inflation forecasts, which would be a sign it grows a bit more nervous that high oil prices costs are pushing prices for a wider range of goods and services has collided. \