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Stocks Slide As Fed Continues Stimulus Program

Stocks Slide As Fed Continues Stimulus Program

The stock market pulled back from all-time highs after the Federal Reserve said Wednesday the U.S. economy still needs help from its stimulus program.

 

The economy is expanding, but only moderately.  Add to that the housing recovery is slowing down.  So the Fed said it will continue its $85 billion in monthly bond purchases to keep interest rates low and encourage hiring and investment.

KTRH money man Pat Shinn from Heritage Asset Advisors calls it a “Goldilocks” approach to economics.

We're looking for an economy that is neither too hot, nor too cold, but just right,” Shinn tells KTRH News.

Fed policymakers say they need more evidence that tapering off the bond buying program won't cause more harm than good.

We've got an economy that's growing at a fast enough rate that corporate profits can grow, but its not going so well that the Federal Reserve is going to cut back on its bond purchases anytime soon,” says Shinn.

 

 

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