Stocks Fall with Worries Over Fed’s Strategy

Wall Street was jumping at the Wednesday open on worries that the Federal Reserve’s next round of quantitative easing could be smaller than expected.
The central bank is widely expected to announce a restart to its program to purchase Treasury bonds when it gathers next week, but the Wall Street Journal reported Wednesday that the size of the purchases may be smaller than the $500 billion to $1 trillion anticipated.
All the major indexes dropped at the opening bell with the Dow Jones industrial average down 71 points to 11,099, the S&P 500 off 7 points to 1,179 and the Nasdaq 4 points lower at 2,494. Treasury yields, which would in theory go even lower as the Fed pours money into the market, were higher Wednesday with the 10-year yield just under 2.70% and the 2-year at 0.41%.
The outlook for stocks and the economy is Grimm at the moment with many home mortgages still in foreclosure and debts raising each day.