Fed eyes shrinking bond buys

The Federal Reserve could continue shrinking the size of its monthly bond purchases as it winds down long-standing stimulus, according to The Wall Street Journal.

The paper reported Tuesday that the Fed could announce at the end of the month that it is prepared to reduce the size of its monthly bond purchases to $65 billion. The $10 billion cut in purchases would be the second of that size in as many months, after the Fed announced plans to slow stimulus in December.

Fed Chairman Ben Bernanke said at a press conference following that announcement that the central bank was eyeing regular cuts to the size of bond purchases so long as the economy improves as expected. A disappointing December jobs reports has driven some speculation the Fed could change its bond buying plans to keep buying more for longer.