Federal Reserve to start tapering

http://www.globalpost.com/dispatch/news/regions/americas/united-states/131218/federal-reserve-policymakers-bernanke-tapering

The Federal Open Market Committee announced Wednesday that it would start winding down its $85-billion-a-month bond-buying program.

Policymakers will start by reducing purchases by $10 billion a month, beginning in January. 

The long-awaited decision sent US stocks sharply higher, because the reduction was so modest. The Dow Jones Industrial Average rose 1.05 percent while the S&P 500 was up 0.74 percent after the announcement at 2:00 p.m. EST. Equities had fallen ahead of the decision. 

Ten-year Treasury yields were up five basis points to 2.89 percent as investors sold fixed-income assets. A reduction in Fed purchases has dampened demand for bonds.