Follow storms in SE OK on KFOR live interactive radar

Fed says to cut back on its economic stimulus beginning in Jan.

This is an archived article and the information in the article may be outdated. Please look at the time stamp on the story to see when it was last updated.

The U.S. economy is healthy enough to begin weaning it off the steady flow of stimulus the Federal Reserve has been supplying since the Great Recession, the central bank said Wednesday.

In a move that few expected, the Fed said it would be cutting its historic $85 billion a month program to boost the economy by about $10 billion per month beginning in January.

“Information received since the Federal Open Market Committee met in October indicates that economic activity is expanding at a moderate pace,” the Fed said in a statement released at the end of a two-day meeting to set policy.

The Fed also said the labor market has improved further, household spending and business investment advanced and inflation expectations are stable.