The Federal Reserve is likely to reduce its bond purchases in $10 billion increments over the next seven meetings before ending the program in December 2014, economists said.
The median forecast in a Bloomberg survey of 41 economists matches the $10 billion reduction announced yesterday as the Fed began to unwind the unprecedented stimulus that has defined Ben S. Bernanke’s chairmanship.
The Federal Open Market Committee said in a statement it will slow buying “in further measured steps at future meetings” if the economy improves as forecast. The Fed may taper its buying by about $10 billion per gathering, Bernanke said at a press conference in Washington.
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