If you ever feared that traders are an overly skittish lot prone to cause market spasms based off of the smallest scrap of news or rumor, then yesterday’s 1.2 percent drop in the S&P 500 will not reassure you. Markets were poised to drop on Friday, Feb. 22 as well because the most recent Fed meeting minutes said that some officials were concerned over its stimulus actions inflating asset bubbles or creating a risk of destabilizing inflation, which in turn may cause the Fed to pull back on bond purchases in the short term.

 

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