In February, the Central Bank will provide $65 billion to support the economy
On Wednesday, January 29, the U.S. central bank at a meeting decided to reduce the purchase of bonds to $ 65 billion a month. This was announced by Ben Bernanke during his last speech as chairman of the Fed. On February 1, Janet Yellen will take the post, the first woman in history - the chairman of the Fed.
The Federal Open Market Committee promised to buy bonds worth $ 65 billion since February 2014, $ 10 billion less than last month. Representatives of the Committee indicate that the Fed will not necessarily reduce the incentive to $ 10 billion per month.
«Federal system did not establish the mandatory conditions for the purchase of assets. Committee's decision on further reducing of purchases of bonds depends on the state of the labor market and inflation, and assesses the likely effectiveness of such purchases», indicates the statement.
The report did not mention the situation of emerging markets that rely heavily on the decisions of the Fed. Ever since it became known that the U.S. reduces the incentive program, there is a fear of financial instability in countries with emerging economies.
