Fed will reduce bond purchases by $10B in January

Fed will reduce bond purchases by $10B in January

WASHINGTON (AP) — The Federal Reserve has decided to reduce its stimulus for the U.S. economy because the job market has shown steady improvement. The shift could lead to higher long-term borrowing rates for individuals and businesses. The Fed’s decision amounts to a vote of confidence in the economy six years after the Great Recession struck. It signals the Fed’s belief that the U.S. economy is finally achieving consistent gains.