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.
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
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