Stocks take a sharp fall
NEW YORK (AP) — Stocks fell sharply Wednesday after the Federal Reserve disclosed that its top officials were mostly in agreement that the central bank should end its massive bond-buying program.
The Dow Jones industrial average fell 105 points. It was the index’s sixth straight decline, the longest losing streak since July 2012.
In the minutes from Fed’s July policy meeting, board members said it “might soon be time” to slow the purchases. The bond-buying program has been in place in one form or another since late 2008 to keep interest rates low and encourage growth.
Traders have been worried about weak earnings and have been looking for clarity on how and when the Fed will wind down its bond purchases.
Some investors believe the Fed’s bond-buying has inflated stocks.
Brad McMillan, chief investment officer for Commonwealth Financial, said the market had been overreacting to the possibility that the Fed is going to taper off its bond purchases.