WASHINGTON: The US Federal Reserve concludes a two-day meeting Wednesday expected to pledge ongoing stimulus for a recovering US economy amid what is likely to be a heated debate on a so-called exit strategy.

The Federal Open Market Committee (FOMC) is widely expected to keep its near-zero interest rate policy and a range of programs to flood the financial system with money to restore credit flows.

The central bank has held its base federal funds rate in a range of zero to 0.25 percent since last December, and is in the process of carrying out a pledge to pump more than one trillion dollars into the financial system to keep credit flowing.

But Fed officials have acknowledged that they have an exit plan and can implement it when needed, while dampening speculation about any imminent change of policy.

A statement is expected around 1915 GMT Wednesday.

Fed chairman Ben Bernanke last week went out of his way to quash the notion that the Fed was closer to rate hikes in view of better economic news, especially in the labor market, analysts noted.

"With the sustainability of recovery still in doubt, we do not see why the Fed would make any changes at this point, especially with year end approaching, when financial markets are notoriously illiquid -- perhaps significantly more so this year," said Joseph LaVorgna, chief US economist at Deutsche Bank.

"We expect only slight tinkering with the statement. In fact, the only substantive change we are looking for from the FOMC is a mild improvement in the committee's assessment of the economic outlook."

Markets will be watching to see if the Fed keeps language indicating rates would be held low for an "extended period." Any significant change could signal the exit strategy is under way.

Donald Ratajczak, consulting economist at Morgan Keegan, said that the Fed may be shifting its criteria for when it begins to hike rates because much of economic activity is still supported by stimulus efforts, even though unemployment has come off a peak of 10.2 percent to 10.0 percent.

"While I thought employment would be the trigger to changing Federal Reserve policy, I now believe it is loan activity," Ratajczak said.

"The Fed is concerned that a recovery cannot be sustained while commercial and industrial loans are falling at a 14-percent rate, and I agree with that conclusion. That is why Bernanke reiterated an extended period for near-zero rates even after a recovery pattern of labor market conditions materialized in November."

Others say that as the recovery gathers steam the Fed may be forced to act more quickly.

Kent Engelke, economic strategist at Capitol Securities Management, said the economy has already rebounded sharply from earlier this year and this could mean a more rapid return to normal conditions.

"It is becoming more evident this recovery is stronger than many were expecting with questions of sustainability no longer the most written headline," he said.

"If the economy continues to improve at this rate, a rate that I think will spur jobs growth, the primary headline would perhaps be the impact of the inevitable change in monetary policy."

Brian Wesbury at First Trust Portfolios said the latest inflation figures -- showing a 1.8 percent leap in wholesale prices -- suggest the Fed has failed to keep prices in check.

"The Federal Reserve is twiddling its thumbs waiting for consistent signs of falling unemployment before it starts raising interest rates," he said.

"The Fed's theory is that inflation won?t show up until the labor market gets a lot stronger than it is today. But inflation isn't just arriving early, it?s bashing down the door."

US gross domestic product rose in the third quarter at a 2.8-percent annual pace, after four quarters of contraction in a brutal recession.

Some analysts still fear that the recovery will be limited by high unemployment, which reduces consumer income and spending that accounts for the lion's share of economic activity.