The job market is almost strong enough to stand on its own. That's the message from Federal Reserve officials, who announced today they will start reducing their massive economic stimulus program.
Beginning in January, the Fed will buy $75 billion in bonds each month - that's down from the $85 billion it had been buying since September 2012. The cutbacks in bond buying represent the beginning of a process that Wall Street has nicknamed "Tapering."
The Fed stresses this doesn't mean interest rates will rise. In fact, the Fed said it planned to keep short-term interest rates "Exceptionally low" For now. Ref. CNN
Fed not inclined to pause stimulus pullback
The economy would have to veer "Substantially from its expected path" For central bank to delay its tapered-stimulus strategy, according to minutes of last month's Fed meeting, released Wednesday. Ref. USAToday
Fed minutes show policymakers concerned about markets misreading rate plans
Federal Reserve policymakers anticipated that a slight upward shift in the group's updated central forecast for the Fed's key interest rate could send the wrong signal to financial markets, according to minutes from the Fed's March meeting released Wednesday. Ref. USAToday
Fed reaffirms rates to stay low for 'considerable time' after bond-buying ends, provides further guidance - Fed policymakers say they have finalized strategy for how they will raise rates. Ref. USAToday
[b]House passes bill to audit Federal Reserve:[/b
Passed 333-92, the bill would require the comptroller general to conduct an audit of the Federal Reserve's board of governors and banks within one year and submit a report to Congress on the findings. A total of 106 Democrats joined all but one Republican in support of the measure. Ref. Source 9