BANGKOK (AP) Asian stock markets were muted Tuesday as investors braced for a possible first step by the U.S. Federal Reserve toward reducing its massive stimulus program.
The Fed could announce that it is has decided to begin scaling back its massive economic stimulus program as soon as Wednesday, when it concludes a two-day policy meeting.
Though hiring and economic growth in the United States remain soft, the Fed is widely expected to slow the pace of its bond purchases. Its purchases of Treasury and mortgage bonds have been designed to keep long-term loan rates low to get people to borrow and spend and invest in the stock market.
Most economists expect the Fed's initial move to be small a reduction in monthly purchases from $85 billion to $75 billion.
Evan Lucas, market strategist at IG in Melbourne, Australia, said that "there is an air of acceptance in the market for a mild taper" despite data out of the U.S. pointing toward an uneven economic recovery.
