Fed Closes Chapter on Easy Money
The Federal Reserve has announced it will end its bond-purchase program, ending a quantitative easing experiment that stirred debate even as the central bank said it accomplished its goal of reducing unemployment. The move is a vote of confidence in the U.S. economy, which many economists peg to have grown at an annual pace near 3% or more in the third quarter. Officials will now turn their attention to determining when to start raising interest rates. The Fed has plans to maintain its current level of bond holdings until after it starts raising rates. Eventually, officials expect to reduce the holdings by letting securities mature without reinvesting the proceeds.