Stocks sharply lower after Fed minutes

Stocks sharply lower after Fed minutes

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Stocks in the UK and Europe are following US markets lower after minutes from the US Federal Reserve’s July meeting indicated that a reduction in quantitative easing could start as early as this year.

The FOMC members discussed the possible tapering as the US economy is gaining momentum but the Fed have stated that cutting back on the bond purchasing program does not necessarily mean an imminent increase in interest rates. Investors are now expecting an announcement in September but more information could be forthcoming at next week’s Jackson Hole summit.

 

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