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So you can view this as kind of a long coming victory for the governing council s hawks the since the policy statement no longer contains this reference to widening stimulus in case the economy worsened so that is of course an end to what they call the easing bias or this bias towards quantitative easing now that s also a sign of course that the e.c.b. is slowly showing stimulus to the door at a time where the eurozone is enjoying sustained recovery and now the stimulus actually tends to reduce the currency values tends to depress them so the news of this statement immediately boosted the euro now of course the line that you see has it tried now is that the growth is there but it s coming amid stubborn inflation so the asset buying program is going to run until september at least but there is still no fixed date now the press conference is going to come up in a few minutes and there could be more clues that there or i wanted to be things ....
Worried about the fact that its asset buying program has created bubbles in the markets in different sectors, in certain kinds of corporations that have riskier junk bonds, in emerging markets, in commodities. you re seeing a flight from some of that risk now. that s what s happening. what about also china? i know you have written so much about china in a series on time. explain to us the concerns with china. what s behind the plunge there? connect the dots. how does it affect me and you? it s a great question. so there are two stories out there about china right now. only one of them is correct. the two stories are that china is having a lehman brothers moment, that it s having a banking meltdown because banks havetopped lending, the credit crunch there right now, that is not the case. china is, however, slowing. growth is slowing. growth is no longer in the double digits. it s probably not even 8% which is what it s been the last few years. that sounds relatively high to us. bu ....
Worries about the fed easing up on stimulus and a plunge in, speaking of china, chinese stocks causing u.s. stocks to tumble to their lowest levels in two months. straight to cnn s global economic analyst and time assistant managing editor ran na foroohar. some of the worry over the fed tapering off its bond buying program, again, somewhere down the road, do we know when the that part of the road happens? well, that part of the road could happen as early as the end of this year. what s really interesting is the markets have been reacting as though all this is already happening. which is fascinating. all bernanke has said is at some point we will stop this $85 billion a month asset buying program. he hasn t talked about raising interest rates. although you are starting to see worries about that in the market. i think that there has been this sort of flight from risk. and, indeed, the fed itself has ....
Still up off that 15,000 mark. but the market very rattled. down 560 points over the last couple sessions. there were comments by ben bernanke they might stop the rapid asset buying program they have been in and that could lead to a situation where you see prices dropping in the bond market and interest rates going higher. but perhaps there is some encouragement in the markets this morning they won t want to see a huge gyration in the markets and an increase in those interest rates that would sort of send us in the other direction. so that s what they are supposed to do, the federal reserve. reporter: that bump, sort of a modest bump. exactly what stu varney predicted. martha: he puts an envelope up to his head. the news is breaking fast in the case of new england patriot player aaron hernandez. ....
The balance in your retirement account. stocks are falling in the final hour of the trading day on wall street. we want to get now to rana down on wall street as well as our felicia taylor. again, surrounded by people who can help me out here. rana, to you, what is going on here? well, it s a good question. i think you have to go back to the announcement yesterday from the fed that quantitative easing, that asset buying program where we ve been seeing the fed pour $85 billion a month into the market is going to be tapered. it s going to be scaled back at some point next year. at some point after that interest rates will start to rise. this is something we know has been coming for a long time now. ben bernanke and the fed have been kind of trying to tiptoe away from it. because we knew we were going to have a market reaction. the fed s buying program has had some effect in pushing the market up over the last few years. now the big question is how much is it going to dip now that we kn ....