Fed to note economic improvement, may hint on exit

The U.S. Federal Reserve is expected to take note of an improving economy at the close of a meeting on Wednesday, while cautioning that high unemployment puts the recovery at risk.

The Fed is widely expected to hold overnight lending rates at close to zero and repeat its intention to keep rates exceptionally low for an extended period in a statement the Fed will issue around 2:15 p.m. EDT, after the central bank’s two-day policy meeting draws to a close.

… “Officials think that recovery is far from assured, that inflation may still decline from current levels, and that it’s early days yet for the healing in the financial system and markets,” Morgan Stanley economist Richard Berner wrote in a research note.  Click here for full Reuters story….