(VOVworld) - The US Federal Reserve (FED) decided to end its quantitative easing (QE) stimulus program on Wednesday, saying it will keep the interest rate low to stimulate investment and credit.
Fed chief Janet Yellen has been engineering an exit from the QE stimulus scheme
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After a 2-day conference, US Federal Open Market Committee said FED was determined to end the QE stimulus program after six years trying to help the US escape from the 2007-2009 great depression. In three rounds of QE, the FED pumped 4,400 billion USD into the market to buy treasury bonds and hedge funds to keep interest rates low, which helped boost the economy.
The FED said it was confident the US economic recovery would continue, despite a global economic slowdown. Another reason for the decision was the improvement of employment market within 8 months. The unemployment rate has dropped to 5.9% from 6.1 percent, the biggest drop in the last 6 years.