Dollar plummets and sharemarket drops $20 billion: What does the US Fed’s decision to end economic stimulus mean? A SmartCompany Q and A

The United States Federal Reserve chairman Ben Bernanke announced a rollback in its bond buying program later this year, further signalling an improving US economy. On the back of the announcement, the Australian dollar dropped to around US92 cents, while yesterday it was worth US94.2 cents. The US Federal Reserve’s decision was nothing new, but […]

Yolanda Redrup 20 June, 2013

The United States Federal Reserve chairman Ben Bernanke announced a rollback in its bond buying program later this year, further signalling an improving US economy.

On the back of the announcement, the Australian dollar dropped to around US92 cents, while yesterday it was worth US94.2 cents.

The US Federal Reserve’s decision was nothing new, but in chairman Ben Bernanke’s speech he changed the timeline of the cutbacks, saying the stimulus could end by the middle of next year.

“Overall, the committee believes the downside risks to the outlook for the economy and the labour market have diminished since the fall, but we will continue to evaluate economic conditions and risks as they evolve,” Bernanke says.