Yellen to enter spotlight as new leader of Fed

WASHINGTON (AP) — New Federal Reserve chief Janet Yellen will be in the spotlight Wednesday when the Fed wraps up its two-day meeting in Washington.

Investors are watching closely for any hints of how her tenure might differ from that of her predecessor, Ben Bernanke.

This is Yellen's first meeting as Fed chair.

After the Fed issues a statement at the end of its policy meeting and updates its economic forecasts, Yellen will preside over a news conference.

Most analysts expect the Fed to announce a third reduction in the monthly pace of its bond purchases from $65 billion to $55 billion. Its decision to continue paring them signals its belief that the economy is showing consistent improvement.

Many analysts think the Fed could also drop a reference to a specific unemployment rate that might cause it eventually to begin raising short-term interest rates.

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