Bernanke Clarifies Stimulus Talk, Markets Tumble
Fed isn't ready to take action soon
By Sarah Whitmire,  Newser Staff
Posted Jul 14, 2011 1:50 PM CDT
In this June 27 photo, traders work on the floor at the New York Stock Exchange.   (Seth Wenig)
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(Newser) – Wall Street semantics: Yesterday, Ben Bernanke appeared before Congress and mentioned the word "stimulus." His remarks were widely interpreted to mean that the Fed was poised to take action to bolster the economy, and the markets rose in response. Today, Bernanke resumed testimony and made clear the Fed wasn't considering stimulus measures anytime soon, reports AP. Markets, which had been up 90 points, immediately tumbled, and the Dow was down about 50 points in its final hour.

 

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