Stocks Tumble as Fed Presidents Send Competing Messages
NEW YORK ( TheStreet) -- U.S. stocks tumbled Monday as fears of a Chinese banking crisis were heightened as three Federal Reserve presidents offered competing views about the central bank plans for the stimulus measures that have helped fuel stocks for more than a year.
The S&P 500 lost 1.2% to 1,573.09 after dropping as much as 2% during the session before those losses were pared to a decline of 0.6%.
Stocks appeared to have rebounded after hitting its session low before Dallas Fed President Richard Fisher, who is not a voting member of the Federal Open Market Committee, said he favors the central bank scaling back its quantitative easing programs.
Earlier in the day, comments from New York Federal Reserve President William Dudley, an FOMC voting member, that the Fed ought to be more aggressive in its bond-buying program if it is to reach its inflation and employment targets, appeared to calm investor concerns.Separately, Minneapolis Fed President Narayana Kocherlakota also on Monday said the bank needs to provide clearer language about the longer-term Treasury and mortgage-back securities purchases. Kocherlakota said the bank needs to continue the monthly purchases at least until the unemployment rate dipped below a 7% threshold. The benchmark 10-year Treasury note was sliding 9/32, boosting the yield to 2.572%. "In terms of the 10-year, I think a lot of it is an overreaction; the timetable that
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