The U.S. Federal Reserve said starting January it would pull back on mortgage backed securities purchases and increase its pace of buying Treasury securities.
The central bank said that it would reduce mortgage-backed asset purchases by $5 billion to $35 billion per month and add the same amount, $5 billion, to its monthly purchase of Treasury securities.
The adjustment moves the Fed's impact away from the private sector and more towards the pubic sector, a move the Fed said the economy could handle due to "growing underlying strength in the broader economy."
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Original headline: Federal Reserve tweaks policy
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