Fed will cut bond purchases by $10B in January 2014
December 18, 2013
The Fed takes its first significant step back from the massive stimulus it has applied for five years to fuel the economy’s recovery.
In a statement after a two-day meeting, the Fed said, that starting in January, it will buy $75 billion a month in government bonds, down from $85 billion a month since October 2012. The Fed will purchase $40 billion in Treasury bonds, down from $45 billion previously, and $35 billion in mortgage-backed securities, down from $40 billion. The purchases are intended to hold down interest rates and spur economic and job growth.