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US Federal Reserve to slow stimulus effort

18 December 2013 Last updated at 22:44 GMT

The US Federal Reserve has announced it is to start scaling back its massive stimulus programme in an effort to boost the US economy.

The chairman of the Fed, Ben Bernanke, said that from January it would reduce its spending on US government bonds by $10bn a month.

It follows encouraging signs that the US economy is growing more strongly.

Robert Peston reports.