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US Fed to wind down $600-bn stimulus

It was probably the most closely watched announcement by the Federal Reserve for years. The committee that oversees US interest rates announced that it was carrying on with the policy of keeping rates low but would end its massive programme to buy back government bonds.

business Updated: Apr 28, 2011 23:01 IST

It was probably the most closely watched announcement by the Federal Reserve for years. The committee that oversees US interest rates announced that it was carrying on with the policy of keeping rates low but would end its massive programme to buy back government bonds.

In a statement following a two-day meeting, the Federal Open Market Committee said economic recovery in the US was “proceeding at a moderate pace”.

With the recovery still fragile, the committee said it would continue with a policy that has seen short-term interest rates driven down to near zero but finish its $600 billion bond buying programme designed to pump cash into the US economy.