US ends pumping of money in economy

The United States Federal Reserve decided Wednesday to end its quantitative easing stimulus programme, after six years of pumping money into the economy via asset purchases to shore up growth.

The Fed also said it would not raise interest rates for “a considerable time” after the end of the QE program, sticking to its timetable of an increase well into 2015.

The two key signals of its monetary policy were expected, as the US central bank pulls away from the era of economic crisis with an economy that is growing steadily, but with some worry about weak inflation.

The Federal Open Market Committee, in a post-meeting statement, said the economy continues to grow at a “moderate” pace and labor market conditions, long a particular FOMC concern, have improved “somewhat”.

It also suggested that low inflation is not too much a worry, saying longer-term expectations “remain stable.”