Good as its word, the Federal Reserve System continues its tapering policy despite global ge-opolitical tensions and threats to economic stabilization. For context, the Fed’s quantitative easing program was launched to stabilize the situation on the stock market after the financial crisis of 2008. However, the measure was not meant for lasting long. In the middle of the last year the U.S. regulator started to prepare the markets for gradual reduction in its bond purchases. It was planned to trim the program by $10 billion monthly. The initial volume of the program totaled $85 billion. Thus, in early May another cut to QE was made. Hence, the monthly asset buying was pared to $45 billion. It was Ben Bernanke who took the course on tighter policy. Janet Yellen, the first woman to head the U.S. central bank, followed this policy. The U.S. economic growth slowed sharply in the second quarter after a harsh winter; however inflation will remain under control until 2015. GDP is seen to accelerate further and keep the pace of growth logged in the first quarter. It is expected that economy will gain 2.6% this year and 3.5% by 2015. Last year the average growth was 1.9%. In early 2014, the U.S. indicators were weak, missing the forecasts. Nevertheless, the economists are sure that they will see stronger figures in the second quarter. The Federal Reserve hopes to end monetary stimulus program by close of this year.
