— This is the script of CNBC's news report for China's CCTV on October 30, Thursday.
The Federal Reserve has taken away the punch bowl.
In a statement after its two-day meeting, the central bank announced that it will end its long standing bond-buying program.
CNBC's Hampton Pearson reports.
Just a few hours after Janet yellen arrived at the Federal Reserve headquarters, the Fed Chair and her fellow monetary policy makers, made history, ending the central bank's multi trillion dollar bond buying program, nearly 6 years after the financial crisis. But the Fed will continue to keep interest rates at the historic levels for a considerable time, even aas the asset purchase program comes to an end. Key moves managers say the moves is long overdue
[Bob Doll / Chief Equity Strategist, Nuveen Asset Management] "I've been of the view, the Fed's been a bit behind the curve, given all the numbers we look at , i'm glad we've on there. i've liked to see the Fed go sooner. That would mean the economy's stronger. Earning's going to be better I think that's good for the stock market."
While the Fed is ending QE this month, comments from policy makers about the labor market conditions and the outlook for inflation are heating up the debate over what's next for key short term interest rates. With the job market improving and unemployment down at 5.9%, the FOMC statement suggests there may be less slack in the labor market. Policy makers say that the under untilization of the labor resources is gradually diminishing. And while lower energy prices may keep a lid on inflation in the short run, the Fed now says the likelihood of inflation running at a persistently below 2% has diminished somewhat since early this year . Fed watchers say that the slightly more hawkish tone could move up the timetable for an interest rate hike.
[David Kelly MD & Chief Global Strategist, JPMorgan Asset Management] "Even with a moderate pace of economic growth, the labour market is tightening up fast. I think the real key to whether we get a rate increase whether as early as March is - What do wages do from here?"
The US econ is enjoying increased business and consumer spending, manufacturing growth and an employment rate at a 6 year low. But housing is still struggling and the slow down in global growth causes teh biggest threat to the recovery. In Washington, Hampton Pearson, CNBC Business News.
Now, another way to find out if QE worked in the US... is to look at Europe.
Over the same time that the US bought hundreds of billions of bonds... the balance sheet over at the European Central Bank has declined by a TRILLION.
So of course, QE had its failings. But supporters of the program say, just look at Europe... it could have been much worse.
I'm Qian Chen, reporting from CNBC's Asian headquarters.