- Bill Clinton to endorse Charlie Rangel for re-election
- Pfc. Bradley Manning is now Pfc. Chelsea Manning: Court says so
- Secret base U.S. special forces used to train Libyans now under terrorist control: report
- 9th suspect in N.C. kidnapping turns self in to FBI
- L.A. sheriff admits to testing flyover spy program without notifying residents
- Foreign minister vows response if Russians are attacked in Ukraine
- Robert Griffin III to drive pace car before Richmond NASCAR race
- Material on Australian shore examined in jet hunt
- Bomb, shooting in Egypt kills 2 police officers
- Tenn. woman receives two-year sentence for stealing $364K meant for homeless veterans
Fed eases up on stimulus bond-buying program
Bernanke, board give first sign of long-awaited ‘tapering’
Citing underlying strength in the economy, the Federal Reserve surprised world financial markets Wednesday by cutting back its bond purchase program by $10 billion a month in 2014.
The central bank said it will continue to pump $75 billion a month into the economy and markets through purchases of Treasury bonds and mortgage-backed securities, but the change nevertheless marked the first time since the Great Recession that the U.S. central bank has felt confident enough to move toward ending its extraordinary cash infusions.
Despite widespread predictions that the Fed would wait until next year to change course, the U.S. stock market took the move in stride, apparently viewing it as confirmation that the economy is poised to move into a higher gear next year.
The Dow Jones Industrial Average was up 136 points several minutes after the Fed announced the move shortly after 2 p.m.. The change represents the final policy move by Fed Chairman Ben S. Bernanke, who is due to be replaced by Fed Vice Chairman Janet Yellen at the end of next month.
Mr. Bernanke will brief the press on the Fed’s reasons for starting its so-called “tapering” of asset purchases earlier than expected at a news conference scheduled for 2:30.
The statement issued by the Fed’s interest-rate setting committee cited recent economic reports showing that the economy withstood very well this year’s round of federal budget cuts and a 16-day government shutdown in October.
“Taking into account the extent of federal fiscal retrenchment since the inception of its current asset purchase program, the committee sees the improvement in economic activity and labor market conditions over that period as consistent with growing underlying strength in the broader economy.”
About the Author
- Stalemate on the Hill may spare Fannie and Freddie from reform
- U.S. Treasury warns China on currency
- IMF gives U.S. Congress year-end deadline for passing reforms
- IMF eyes 'Plan B' for reforming itself without U.S.
- Russia, China leading efforts to bypass U.S. as IMF reforms stall on Capitol Hill
Latest Blog Entries
TWT Video Picks
Feds who send arms against ranch families betray American values
- Nevada rancher Cliven Bundy hailed as patriot, ripped as lawless deadbeat
- CARSON: When government looks more like foe than friend
- Pentagon plans to replace flight crews with 'full-time' robots
- Georgia governor signs bill expanding gun rights
- America is an oligarchy, not a democracy or republic, university study finds
- Texas is next! AG warns BLM wants 90,000 acres after Bundy ranch standoff
- Professor apologizes after blasting Republicans in class
- Justice Dept.'s new clemency guidelines: Crack offenders most obvious candidates
- Ukraine claims torture by pro-Russian forces on the heels of Biden's stern warning to Moscow
- Ministry of Truth: SCOTUS skeptical of law to police campaign 'lies'
Top 10 handguns in the U.S.
Celebrity deaths in 2014