New fears on Wall Street as Fed announces it will scale back purchasing of bonds
POSTED: Friday, June 21, 2013 - 7:00am
UPDATED: Friday, June 21, 2013 - 7:04am
NBC NATIONAL NEWS — Thursday was the worst day all year - the second straight very big selloffs after ben Bernanke warned the Federal Reserve may be scaling back but it's been doing to help the economy.
Here's how this could affect you: if you're a borrower your money may not go as far if interest rates start creeping up.
Asian markets are down this morning as we wait to see if Wall Street will tank for a third straight day.
It happened after the Federal Reserve announced it'll buy fewer bonds because the economy's improving.
"There's certainly concern that if the Fed provides less support, stock prices could tank," said RBS Chief Economist, Michelle Girard.
On the street, Americans aren't too concerned.
"If you look at it at a month to month basis you'll put yourself into the hospital worrying about it," said one investor.
"I got about a good twenty-thirty years before I retire so they tell me not to worry about the day to day," said another.
"It may be best to put your emotions in the backburner if you're in it for the long haul, especially if you're young." Heather Hughes, SunAmerica Mutual Funds.
Markets open in a few hours, after the Dow plunged 353 points - its worst day this year.
The Blame Came Quickly From Washington.
"The President's policies are getting in the way of investors and-- and entrepreneurs willing to invest in our economy. They're just sittin' on their hands," said House Speaker John Boehner, Ohio.
Housing is where this could really hit a lot of americans in the wallet. Interest rates may creep up, but they're still low.
"We're still talking about rates that are very, very low and not a headwind to perspective homebuyers." Greg McBride/ Bankrate.com
In May, five million homes sold - up four percent in a month, almost 13% in a year.
The median home price in the U.S. is now $208,000, that's up 15% from last year.