Skip to comments.Stocks slump on Janet Yellen's rate hike remark
Posted on 03/19/2014 2:39:18 PM PDT by SeekAndFind
Investors weren't too thrilled by what they heard from Janet Yellen during her first meeting in charge of the Fed.
The Dow fell more than 100 points, while the S&P 500 and Nasdaq also finished lower.
Stocks were relatively stable as Yellen started her press conference. But the Dow fell as many as 180 points before recovering after she said the Fed's stimulus program would most likely be finished by the fall and that a rate hike could come as soon as early 2015.
Prior to the press conference, the Fed said it will continue trimming, or tapering, its monthly bond buying program by another $10 billion, to $55 billion a month.
Those asset purchases, a policy known as quantitative easing, started at the height of the 2008 financial crisis to support the U.S. economy. Many experts say it also has been a key driver behind the bull market in stocks for the past five years.
The Fed also said in its statement that was dropping its 6.5% unemployment threshold for hiking interest rates, instead saying that it will strive for maximum employment and 2% inflation before any rate change.
The central bank added that it would keep interest rates near zero for a "considerable time" after its bond purchases end. But in response to a question at the press conference, Yellen said that a "considerable time" could be as short as six months.
(Excerpt) Read more at money.cnn.com ...
“Stupid is as stupid does”
Oh gee, I lost more money today,,thanks Janet!
wake up voters...
get rid of obama,,,we get rid of his thugs and this old lady is one of his....
FLIP THE SENATE IN NOVEMBER...CLEAN UP OBAMA’S JUNK...BYE BYE HUSSEIN..
AND I THOUGHT THIS OLD LADY WAS SUPPOSE TO BE SUCH AN INTELLIGENT, SMART, FINANCIAL WIZARD???
DOESN’T LOOK THAT WAY, DOES IT?
I’d hardly call 1/2 a percent a slump.....it needs to drop 1000 points in a single day for people to wake up.
so we want
debasement of the dollar?
Yes, 100 points either way is not a bellwether.
He did the same thing from time to time, he’s not much better. He was the first in fed history to cozy up to administration (obama). Fed chair is supposed to be independent and non partisan.
Just another acolyte for kenyanomics.
All these cans have been kicked down the road so the impact comes in on someone else's watch, and if the election goes their way, the timelines get bumped another term away...
Has to all go down after the treasuryquits feeding it.