Stocks Sharply Lower Ahead of FOMC Meeting
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Stocks have opened well in negative territory ahead of the Federal Reserve decision on interest rates due later today.
The Dow last traded at 10,567, down 131 points from yesterdays close; the Nasdaq 100 is down 38 and the S&P 500 is down by 14.
Many expect the Fed to maintain the record low federal funds rates of zero to 0.25 percent, but some are sensing the Fed may signal it may take additional quantitative-easing measures.
One idea that has been tossed around is the Fed buying U.S. Treasuries with the proceeds of MBS redemptions.
In a speech last month, St. Louis Fed President James Bullard warned of Japanese-style deflation and said the Fed should buy Treasuries if the economy slows.
Fed Chairman Ben Bernanke recently outlined three options for additional easing, including maintaining its commitment to keep rates low, cutting rates on bank reserves, and sustaining or expanding securities held on its balance sheet.
The FOMC announcement is expected at around 2:15PM ET.
The Dow last traded at 10,567, down 131 points from yesterdays close; the Nasdaq 100 is down 38 and the S&P 500 is down by 14.
Many expect the Fed to maintain the record low federal funds rates of zero to 0.25 percent, but some are sensing the Fed may signal it may take additional quantitative-easing measures.
One idea that has been tossed around is the Fed buying U.S. Treasuries with the proceeds of MBS redemptions.
In a speech last month, St. Louis Fed President James Bullard warned of Japanese-style deflation and said the Fed should buy Treasuries if the economy slows.
Fed Chairman Ben Bernanke recently outlined three options for additional easing, including maintaining its commitment to keep rates low, cutting rates on bank reserves, and sustaining or expanding securities held on its balance sheet.
The FOMC announcement is expected at around 2:15PM ET.
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