The U.S. Federal Reserve has decided to taper its bond-buying program by another $10 billion U.S., to $65 billion a month, beginning in February.
The move underscores the U.S. central bank’s confidence in an economic recovery despite recent volatility in stock markets.
In his last meeting as chairman of the Fed's powerful open market committee, Ben Bernanke agreed to a second tapering, following on a Dec. 18 decision to cut monthly asset purchases to $75 billion U.S. a month in January.
Wednesday's announcement continues the tapering process begun at the start of the year.
The committee said its indicators show that growth in economic activity has picked up, with household spending and business investment advancing more quickly.
The Fed expressed concern about the unemployment rate and lack of inflation in the U.S. and reiterated that rates could remain low until there are further signs of strength.
In January, both the International Monetary Fund and the World Economic Forum gave upbeat outlooks on the U.S. economy, saying it could grow by 2.8% this year.
After the Dec. 18 decision to cut the monthly asset purchases, Bernanke promised "further measured steps at future meetings."
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