U.S. Fed cagey on stimulus withdrawal timing

Jun 19, 2013, 2:16 PM EDT
Federal Reserve Board Chairman Ben Bernanke testifies during a hearing before the Joint Economic Committee May 22, 2013 on Capitol Hill in Washington, DC.
Getty Images/Alex Wong

Federal Reserve Chairman Ben Bernanke said the U.S. central bank expects to slow the pace of its bond purchases later this year and to bring them to a halt around mid-2014, comments that weighed on stocks and pushed bond yields to a 15-month high. The Fed expects moderate growth to keep improving the job market as headwinds facing the economy ease. Bernanke also said policymakers expect inflation to move back up toward their long-term 2% goal. Meanwhile the Fed said it would continue to keep buying $85 billion in bonds per month, and left its key rates unchanged.