Federal Reserve Turns Off Quantitative Easing

The US Federal Reserve has ended its stimulus programme known as quantitative easing after six years of pumping money into the economy to bolster growth.

The US central bank showed confidence that the nation's economic recovery would remain on track as it ended its monthly bond purchases.

It said the economy continues to grow at a "moderate" pace, while job-market conditions have improved "somewhat".

Quantitative easing had been steadily cut from $85bn (£53bn) to $15bn as the economy began to revive after the 2007-2009 recession.

The Fed's policy committee said in Wednesday's statement following a two-day meeting: "The Committee continues to see sufficient underlying strength in the broader economy to support ongoing progress toward maximum employment in a context of price stability."

It also signalled interest rates would remain low for a "considerable time" following the close of the programme this month.

Most economists expect the Fed to keep that rate on hold until mid-2015.

The statement largely brushed aside the challenges posed by recent financial market volatility, faltering growth in Europe and a weak inflation outlook.

The Fed suggested that low inflation was not too much of a worry as longer-term expectations "remain stable".