The program involves the Fed unleashing money into the economy by buying up bonds. The Federal Reserve will taper off purchases starting in late 2013, ending in mid-2014, Bernanke said today.
Bernanke's announcement affected today's market by confirming investors' fears. But long-term, rolling back the stimulus program is the right thing to do, Bernanke said. He claimed that the recovery now looks stronger, and predicted that unemployment would have fallen to near 7% by mid-2014. If the jobless rate stays at 7.6% or higher, the Fed would consider considering the stimulus for longer, Bernanke added.