Wall Street Journal (10/29/14) Jon Hilsenrath
The U.S. Federal Reserve yesterday decided to end its bond-buying program, which has helped the central bank reduce the unemployment rate. “There has been a substantial improvement in the outlook for the labor market since the inception of [the] current asset-purchase program. Moreover, the [Fed] continues to see sufficient underlying strength in the broader economy to support ongoing progress toward maximum employment in a context of price stability,” the Fed’s policy statement said.
The statement also indicated that short-term interest rates would remain near zero for a “considerable time,” but many expect rate increases in mid-2015. However, the official statement from the central bank indicates that if the job market improves more quickly or inflation rises, rate increases could come more quickly.