Fed ends bond-buying, cites job gains

Associated Press

WASHINGTON

The Federal Reserve cited an improving economy Wednesday as it ended its landmark bond-buying program and pointed to gains in the job market — a key condition for an eventual interest-rate hike.

The Fed did reiterate its plan to maintain its benchmark short-term rate near zero “for a considerable time.” Most economists predict it won’t raise that rate, which affects many consumer and business loans, before mid-2015.

But in a statement ending a policy meeting Wednesday, the Fed noted that the job market is strengthening. Its statement drops a previous reference to “significant” in referring to an “underutilization” of available workers.

Instead, the Fed said the excess of would-be job holders is “gradually diminishing.” It also noted solid hiring gains and a lower unemployment rate, now 5.9 percent.