US Fed cuts $10bn from its bond purchases

The U.S. Federal Reserve cut US$10 billion in its US$75 billion-worth of monthly bond purchases, due to "cumulative progress" in the U.S. economy.

US Fed cuts $10bn from its bond purchases

World Bulletin / News Desk

The U.S. Federal Reserve cut US$10 billion in its US$75 billion-worth of monthly bond purchases, due to "cumulative progress" in the US economy.

"In light of the cumulative progress toward maximum employment and the improvement in the outlook for labor market conditions, (Fed) has decided to make a further measured reduction in the pace of its asset purchases," the statement said.

The move is likely to boost the rise of the dollar against currencies in the developing markets, including Turkey.

Turkey's Central Bank introduced a significant rise in its interest rates on Tuesday, to prevent the lira from falling further against the dollar.

After Turkey’s move, South Africa's Central Bank also raised its interest rates on Wednesday.

The U.S. Fed's economic stimulus program provides cheap dollars to developing economies, making it easier to balance its current deficits.

Last Mod: 30 Ocak 2014, 13:03
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