Federal Reserve Cuts Stimulus to $65 Billion a Month

Paul Dykewicz

[Marriner S. Eccles Federal Reserve Board Building]

Federal Reserve Cuts Stimulus to $65 Billion a Month (Reuters)

The U.S. Federal Reserve on Wednesday announced a further $10 billion cut to its monthly bond purchases as it stuck to a plan to wind down its monetary stimulus, despite recent turmoil in emerging markets. Fed Chairman Ben Bernanke, whose term ends Friday, adjourned his last policy-setting meeting without making any changes to the U.S. central bank’s other main policy plank: its longer-term plan to keep interest rates low. The Fed acknowledged that “economic activity picked up in recent quarters, in a statement after the two-day meeting. It is the second straight meeting in which the Fed decided to reduce its asset purchase plan by $10 billion. Starting in February, the Fed will buy $65 billion in bonds per month, down from $75 billion now. It cut its purchases of U.S. Treasuries and mortgage bonds equally. The decision received unanimous backing from Fed policymakers and suggests the policymakers are uniting as Vice Chair Janet Yellen prepares to succeed Benanke as head of the Fed on Feb. 1.

Like This Article?
Now Get a FREE Special Report:
3 Dividend Plays with Sky-High Returns

This newly-released report by a top-20 living economist details three investments that are your best bets for income and appreciation for the rest of the year and beyond.

Get Access to the Report, 100% FREE


img
previous article

Turmoil in emerging markets and a month of disappointing job growth at home are unlikely to deter the Federal Reserve from cutting its bond-buying stimulus on Wednesday, as Ben Bernanke presides at his last policy meeting as head of the U.S. central bank.

PREMIUM SERVICES FOR INVESTORS

Dr. Mark Skousen

Named one of the "Top 20 Living Economists," Dr. Skousen is a professional economist, investment expert, university professor, and author of more than 25 books.

Product Details

LEARN MORE HERE

Bryan Perry

A former Wall Street financial advisor with three decades' experience, Bryan Perry focuses his efforts on high-yield income investing and quick-hitting options plays.

Product Details

LEARN MORE HERE

Jim Woods

Jim Woods has over 20 years of experience in the markets from working as a stockbroker,
financial journalist, and money manager. As well as a book author and regular contributor to
numerous investment websites, Jim is the editor of:

Product Details

LEARN MORE HERE

Bob Carlson

Bob Carlson provides independent, objective research covering all the financial issues of retirement and retirement planning. In addition, Bob serves as Chairman of the Board of Trustees of the Fairfax County (VA) Employees’ Retirement System, which has over $2.8 billion in assets.

Product Details

LEARN MORE HERE

Hilary Kramer

Hilary Kramer is an investment analyst and portfolio manager with 30 years of experience on Wall Street. Since 2010, Hilary's financial publications have provided stock analysis and investment advice to her subscribers:

Product Details

LEARN MORE HERE

Jon Johnson

Jon Johnson's philosophy in investing and trading is to take what the market gives you regardless if that is to the upside or downside. For the past 21 years, Jon has helped thousands of clients gain success in the financial markets through his newsletters and education services:

Product Details

LEARN MORE HERE

DividendInvestor.com

Used by financial advisors and individual investors all over the world, DividendInvestor.com is the premier provider and one-stop shop for dividend information and research.

Product Details

Popular tools include our proprietary Dividend Calendar, Dividend Calculator, Dividend Score Card, and many more.

LEARN MORE HERE