US Fed expected to hold interest rates; may focus on lowering bond holdings

This is expected to signal a vote of confidence in the US economy

The United States (US) Federal Reserve is expected to hold interest rates unchanged on Wednesday and possibly hint that it will start winding down its massive holdings of bonds as soon as September in what would be a vote of confidence in the US economy.

The US central bank will issue its latest rates decision following the end of a two-day policy meeting at 2 pm EDT (18:00 GMT). Economists expect the Fed's benchmark lending rate to remain in a target range of 1.00 per cent to 1.25 per cent.

That would mark another pause in the monetary tightening campaign that the