The Ottumwa Courier

AP National

January 29, 2014

Fed is expected to further trim bond purchases

WASHINGTON (AP) — The Federal Reserve is expected Wednesday to further reduce its stimulus for the U.S. economy even though that prospect has unsettled global financial markets.

The Fed announced last month that it would pare its monthly bond purchases from $85 billion to $75 billion. And it said that if the economy kept improving, it would likely further slow its bond buying at future meetings. The Fed's bond purchases have been intended to keep long-term loan rates low to spur spending and economic growth.

Most economists expect a string of $10 billion monthly reductions in bond purchases to be announced at each Fed meeting this year, concluding with a final $15 billion cut in December.

The two-day Fed meeting that ends Wednesday will be the last to be presided over by Ben Bernanke, who is stepping down after eight years as chairman and will be succeeded next week by Vice Chair Janet Yellen. She is expected to stick closely with Bernanke's policies.

Last month, along with the modest trim in its bond purchases, the Fed made clear it plans to keep short-term rates historically low "well past" the time the unemployment rate dips below 6.5 percent. The rate is now 6.7 percent.

Managing a slowdown in the Fed's bond purchases without roiling markets will pose a tough early test for Yellen. Investors have been nervous in part because a pullback in Fed bond buying will likely mean higher rates. Borrowing could weaken as a result.

Many also fear that higher U.S. rates will lead some bond investors to move cash out of emerging markets and into the United States to seek higher returns. That fear has depressed currency values and roiled stock markets in a number of developing countries.

The Turkish central bank held an emergency meeting Tuesday and announced it was raising a key rate from 7.75 percent to 12 percent to try to reduce inflation and boost its currency, the lira, which had fallen to a record low.

Text Only
AP National
  • A year after background check defeat, modest goals WASHINGTON (AP) — Democratic worries about this November's elections, a lack of Senate votes and House opposition are forcing congressional gun-control supporters to significantly winnow their 2014 agenda, a year after lawmakers scuttled President Ba

    April 16, 2014

  • Court to weigh challenge to ban on campaign lies WASHINGTON (AP) — Negative campaigning and mudslinging may be a fact of life in American politics, but can false accusations made in the heat of an election be punished as a crime? That debate makes its way to the Supreme Court next week as the justi

    April 16, 2014

  • College Board provides a glimpse of new SAT WASHINGTON (AP) — Anxious students — not to mention their parents — can get a heads-up for how the redesigned SAT might look in two years. Sample questions for the new version of the college-entrance test were released on Wednesday by the College Boa

    April 16, 2014

  • End of NYPD Muslim surveillance program applauded NEW YORK (AP) — Muslim groups and civil liberties advocates applauded the decision by New York Police Department officials to disband a controversial unit that tracked the daily lives of Muslims as part of efforts to detect terrorism threats, but the

    April 16, 2014

  • 10 Things to Know for Today Your daily look at late-breaking news, upcoming events and the stories that will be talked about today: 1. NEARLY 300 PEOPLE ARE MISSING AFTER KOREAN BOAT SINKS The accident involving a ferry that was headed to a tourist island killed three passenger

    April 16, 2014

  • Dress codes: Where should schools set limits? EVANSTON, Ill. (AP) — They're called leggings — popular fashion items that are tight-fitting pants to some, and glorified tights to others. Younger girls often wear them as pants with little fuss. But as those same girls approach middle school, leggi

    April 16, 2014

  • People with old Social Security debts get reprieve WASHINGTON (AP) — People with old Social Security debts are getting a reprieve — for now. The Social Security Administration had been participating in a program in which thousands of people were having their tax refunds seized to recoup overpayments

    April 15, 2014

  • Russia tests Obama's ability to stop its advances WASHINGTON (AP) — With the White House asserting that Russia is stoking instability in eastern Ukraine, President Barack Obama is once again faced with the complicated reality of following through on his tough warnings against overseas provocations.

    April 15, 2014

  • Tributes planned to mark Boston Marathon bombing BOSTON (AP) — The anniversary of the Boston Marathon bombings started with a solemn wreath-laying ceremony Tuesday morning at the site of the twin explosions, the first tribute in a day dedicated to honoring the three people who died, the more than 2

    April 15, 2014

  • Police: Suspected killers wore GPS devices ANAHEIM, Calif. (AP) — Two convicted sex offenders dutifully checked in with police every month and wore their GPS trackers around the clock — the rules of parole that are designed to tip off authorities if a freed felon backslides. Yet for at least

    April 15, 2014

Obituaries
Record
Facebook
AP National