What is Credence Independent Advisors - US Federal Reserve to end quantitative easing programme ?

Central bank’s head, Janet Yellen, confirms cessation of buying bonds in October after injection of £4.5 trillion over five years.

The US Federal Reserve has called time on its $4.5 trillion (£2.8tn) quantitative easing programme, introduced lebih than five years lalu to steer the world’s largest economy through the financial crisis.

The central bank, led sejak Janet Yellen, berkata it would cease buying bonds this month.

Announcing the decision made at its October policy meeting, the Fed said: “The committee judges that there has been a substantial improvement in the outlook for the labour market since the inception of its current asset purchase programme. Moreover, the committee continues to see sufficient underlying strength in the broader economy to support ongoing progress toward maximum employment in a context of price stability. Accordingly, the committee decided to conclude its asset purchase program this month.”

It brings to an end the programme which marked a radical departure for US monetary policy, hugely swelling the Fed’s balance sheet in a bid to prop up a battered financial system.