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Stocks drop following Federal Reserve minutes

6:23 AM, Feb 21, 2013   |    comments
A sign for Wall Street is seen just outside the New York Stock Exchange.(Photo: Timothy A. Clary, AFP/Getty Images)
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NEW YORK (AP) - News that several top Federal Reserve officials have been expressing doubts about continuing the central bank's efforts to keep borrowing costs low has sent a shudder through investors.

Minutes of the Fed's Jan. 29-30 policy meeting showed that some officials worried that the Fed's monthly purchases of $85 billion a month in Treasurys and mortgage bonds could eventually escalate inflation, unsettle financial markets or cause the Fed to absorb losses once it begins selling its investment holdings. In the end, the Fed voted last month to keep its bond purchase program in place until the job market improved substantially.

The Dow lost 108 points to close at 13,928 Wednesday. The S&P 500 index had its biggest loss of the year, falling 19 points to 1,512, a loss of 1.2 percent. And the Nasdaq dropped 49 points, or 1.5 percent, to 3,164.

Three stocks fell for every one that rose on the New York Stock Exchange.






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