The Federal Reserve announced Wednesday it would start tapering its massive stimulus program in January, giving a vote of confidence in the recovery of the US economy and job market. The Fed will buy $75 billion on bonds a month next month, down from the $85 billion monthly asset purchases it has made for a year, the Federal Open Market Committee said after a two-day monetary policy meeting. Stocks rallied to new record highs after the Fed action, which marked the beginning of the end of five years of its easy-money policy, aimed at helping the world's largest economy recover from the devastating recession. "In light of the cumulative progress toward maximum employment and the improvement in the outlook for labor market conditions, the Committee decided to modestly reduce the pace of its asset purchases," the FOMC said in a statement.
NBA champions Miami made it clear they won't concede Eastern Conference supremacy to the Indiana Pacers without a fight. LeBron James and the Heat on Wednesday outscored the Pacers 12-2 in the final three minutes to rally for a 97-94 victory in a duel between the East's top two teams. Ray Allen drained a go-ahead three-pointer with 59.5 seconds left to play as the Heat finally got some long-range shots to fall when it mattered. The Heat, who came into the contest shooting 38.6 percent from three-point range, missed their first nine from beyond the arc before connecting on five of their last 12 attempts.