Fed cuts further €10bn from US stimulus programme

The Federal Reserve stayed the course on tapering its stimulus for the US economy yesterday, reducing asset purchases by $10bn (€7.32bn) for the second month in a row.

Amid emerging-market turmoil, blamed in part on its stimulus reduction, the Fed, as expected, cut the monthly bond-buying programme to $65bn beginning February and left its benchmark interest rate near zero, citing “growing underlying strength in the broader economy”.

Wrapping up the final meeting of the Federal Open Market Committee under departing chairman Ben Bernanke, policy makers noted that overall the US economy was doing better.