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News Link • Federal Reserve

Fed tapers another $10 billion

• http://www.cnbc.com, By: Jeff Cox
espite a seemingly dovish tone, markets recoiled at remarks from Yellen, who said interest rate increases likely would start six months after the monthly bond-buying program ends. If the program winds down in the fall, that would put a rate hike in the spring of 2015, earlier than market expectations for the second half of the year.
Stocks tumbled as Yellen spoke at her initial post-meeting news conference, with the Dow industrials at one point sliding more than 200 points before shaving those losses nearly in half. Short-term interest rates rose appreciably, with the five-year note moving up 0.135 percentage points. The seven-year note tumbled more than one point in price.
Moves widely anticipated by financial markets saw the Fed Open Market Committee vote to reduce the pace of its monthly asset purchase program by $10 billion to $55 billion—a continuing process in the market known as "tapering." 

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