Fed to start to cut stimulus programme

The Federal Reserve is currently deciding whether the US economy is finally recovering enough for it to start winding down the stimulus measures whereby it pumps money into the economy each month.

Recent improvements in jobs and retail sales have convinced a growing number of economists it is time for the US central bank to trim its $85 billion a month of bond purchases

The decision by Fed policymakers will come at the end of their two-day meeting.

The highly anticipated announcement will be followed by Ben Bernanke’s last news conference before he steps down as Fed chairman.

With regard to a stimulus wind-down many observers believe the Fed will wait until early in the new year, given persistently low inflation and the fact that the world’s largest economy has stumbled several times in its struggle out of the 2007-2009 recession.