Further gradual reduction in Federal Reserve stimulus expected at Yellen led meeting

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The Federal Reserve is expected to continue dialing back monetary stimulus at its monthly meeting.

It concludes on Wednesday with new Fed Chair Janet Yellen’s first news conference.

Journalists will try to pin her down on when the US central bank will start putting up the cost of borrowing.

They are not likely to get a direct answer, but a number of Fed officials have indicated they are comfortable with market expectations for an interest rate rise sometime around the middle of next year.

With US job growth accelerating and industrial production and consumer spending strengthening, economists expect the policymakers to announce another $10 billion reduction to the monthly bond purchases which have been used to stimulate the economy.