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Stocks Suffer One-Two Punch of Emerging Market Turmoil, Fed Accommodation Cut
By: MT Newswires
Stocks extended earlier losses after the Federal Reserve today voted to trim another $10 billion from its monthly bond-buying stimulus program known as Quantitative Easing. Shares already were declining well ahead of the afternoon Federal Open Market Committee decision to reduce its purchases of Treasury and mortgage debt to $65 billion per month, erasing all of Tuesday's gain, after an aggressive rate hike in Turkey overnight failed to halt the sell-off in the Turkish lira, rekindling worries about slower global economic growth. Gold rose with the rising global uncertainty.