Fed tapers, but says doesn't tighten

Reuters 2013-12-18

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The markets found strength in the Fed's decision to taper back its extreme monetary support of the U.S. economy- in large part because it came along with a clear commitment to keep rates low- even longer.

The Federal Reserve will reduce bond purchases to $75 billion a month- from $85 billion.

In his final press conference as the Chairman of the Federal Reserve- Ben Bernanke was firm- saying the tapering was not intended to be a tightening:

SOUNDBITE: BEN BERNANKE, CHAIRMAN, U.S. FEDERAL RESERVE (ENGLISH) SAYING:

"Purchases are still going to be continuing. We are still going to be building our balance sheet. The total amount of assets that we acquire are probably more than- was certainly more than was expected in September 2012 or in June of 2013. So we'll have a very substantial balance sheet which we'll continue to hold. And now we've also clarified our guidance that we will be keeping rates low well past unemployment of 6.5 percent."

It was an extreme
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