Bernanke: More Cuts in Bond Buys Likely Next Year

(AP) Bernanke: More cuts in bond buys likely next year
By MARTIN CRUTSINGER
AP Economics Writer
WASHINGTON
Chairman Ben Bernanke says the Federal Reserve’s decision Wednesday to slow its bond purchases is a sign of progress and he expects the Fed to take “similar moderate steps” throughout next year to reduce the purchases further if the economy shows continued improvement.

Bernanke made the comments at a news conference after the Fed announced it would being to reduce its bond purchases by $10 billion in January.

Still, Bernanke cautioned that the Fed’s further reductions in the purchases remain dependent on data.

He noted that the economic recovery still remains far from complete and long-term unemployment remains a concern, he said.