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Federal Reserve Announces Reduction in Bond Buying Program

iStock/Thinkstock(WASHINGTON) -- In his last public remarks as Federal Reserve chairman, Ben Bernanke said Wednesday that the Fed will begin to taper its monthly bond-buying stimulus, from $85 billion to $75 billion per month.

Citing moderate growth in the economy, the Fed will pull back a bit on its monthly buying of billions in mortgage-backed securities and Treasury bonds.

“Today's policy actions reflect the committee's assessment that the economy is continuing to make progress, but that it also has much farther to travel for conditions to be judge normally,” Bernanke said.

The Fed said it intends to keep interest rates near zero well after unemployment dips below 6.5 percent.

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