The U.S. Federal Reserve has announced it is to start scaling back its stimulus program. It was the main piece of news expected by markets. To put it simply, the Fed plans to gradually reduce its monthly spending on U.S. government bonds. The monthly bond purchases will be cut by $10 billion. Thus, the Federal Reserve has been buying $85 billion a month in government bonds and now the purchases will be thinned to $75 billion. Moreover, the U.S. central bank held its target range on the interest rates unchanged at 0-0.25%, which is a record low. For most people, the decision was anticipated; some analysts had predicted that it would be done in September this year, but at that time, America had bigger problems, the government shutdown. The event drew a knee-jerk reaction from the U.S. stock market, with the Dow Jones Industrial Average rising 1.04% to 16,040.56; the S&P 500 up 0.75% to 1,794.10, and the Nasdaq rose as high as 4,033.21, up 0.24%. The Fed’s tapering proves recovery in global economy. It is worth mentioning that QE program was launched by the United States in 2008 during the time of the global recession. It was aimed at boosting economic activity.