The Federal Reserve is scaling back its monthly securities purchases to $55 billion from $65 billion.
The Fed’s stimulus program is “not on a pre‐set course and the committee’s decisions about the pace of purchases remain contingent on its outlook for jobs and inflation, as well as its assessment of the likely efficacy and costs of such purchases,” Fed Chair Janet Yellen said yesterday after leading her first meeting of the Federal Open Market Committee.
Yellen, who succeeded Ben Bernanke in February, said yesterday that the Fed would look at a wide range of data in determining whether to raise its benchmark interest rate. The central bank had previously tied such decisions to a 6.5 percent unemployment rate. The jobless rate was 6.7 percent last month.