US Federal Reserve to slow down stimulus effort

The US Federal Reserve has announced a slowdown in its effort to boost the US economy.

The central bank said it planned to scale back its $85bn (£51.8bn) a month bond buying programme by $10bn a month.

Stimulus of this kind is designed to lower interest rates and boost economic activity.

Chairman of the Federal Reserve, Ben Bernanke, announced: "Today's policy actions reflect the committee's assessment that the economy is beginning to make progress, but it also has much farther to travel before conditions can be judged normal."