Fed expected to take further step toward ending bond buying

The Federal Reserve is expected to cut its bond-buying program by a further $10 billion on Wednesday as signs mount that the U.S. economy is starting to pull away from its winter slowdown. Janet Yellen's second policy-setting session as Fed chair should confirm the central bank's plan to wind down its purchases of Treasuries and mortgage-backed securities by year-end - a sign of its confidence the economy is gaining traction. The reduction likely to be announced at the end of the Fed's two-day meeting would bring the total monthly purchases down to $45 billion, split between $25 billion of Treasuries and $20 billion of mortgage-backed securities. But analysts expect little more out of the session as the Fed enters what may be a sort of holding pattern as it transitions from an era of crisis response to one of more normal monetary policy.

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