warning Hi, we've moved to USCANNENBERGMEDIA.COM. Visit us there!

Neon Tommy - Annenberg digital news

Stock Market Takes A Dive

Lauren Madow |
June 20, 2013 | 4:08 p.m. PDT

Deputy Editor

Fed Chairman Ben Bernanke (US Govt, Wikimedia Commons)
Fed Chairman Ben Bernanke (US Govt, Wikimedia Commons)
After hints from the Federal Reserve that it may reduce bond buybacks, the stock market saw its biggest one-day drop in nearly two years.

The market closed at 14,758.32, down 2.3%, or 353.87 points, USA Today reported.

According to Reuters:

The Fed's bond-buying program, known as quantitative easing, has lifted both the U.S. economy and world financial markets by pushing interest rates to historic lows.

But comments by Fed Chairman Ben Bernanke on Wednesday, when he laid out a likely end to the program by next year if the economy strengthens further, brought a dose of finality to the markets.

In a move some found unexpected, Bernanke announced that an improving economy may lead to a tapering off of buybacks.

Read "The financial market freakout, in five charts" at The Washington Post.

Read "Tinker, taper: The Federal Reserve tries to clarify its goals" at the Economist.

Read "Two views of Federal Reserve policy" at Forbes.

Reach Deputy Editor Lauren Madow here. Follow her here.



 

Buzz

Craig Gillespie directed this true story about "the most daring rescue mission in the history of the U.S. Coast Guard.”

Watch USC Annenberg Media's live State of the Union recap and analysis here.

 
ntrandomness