The Federal Reserve will taper its quantitative easing by another $10 billion to $55 billion a month because it thinks the economy is strong enough to support higher employment, it said Wednesday.

It also said it would continue to keep short-term rates low to help bolster the economy but did not specify at what rate it might eventually raise rates, as it has done in the past.

The Fed's previous statement had said it planned to keep short-term rates at record lows "well past" the time unemployment fell below 6.5 percent. The rate is now 6.7 percent.

Continue Reading for Free

Register and gain access to:

  • Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.