As Fed meets, investor angst over rate hikes spooks markets

There is also concern that at a news conference, Fed Chair Jerome Powell could suggest that the central bank will raise rates more times this year than the four hikes most economists expect. Many investors saw the bond buying as helping fuel stock market gains by pouring cash into the financial system.Earlier this month, minutes of the Fed’s December meeting revealed that the central bank was considering reducing its bond holdings by not replacing bonds that mature — a more aggressive step than just ending the purchases. Steady declines since the start of the year have left the S&P down nearly 10% — the level that investors define as a “correction.”Economists have forecast that when the Fed does start allowing some of its $8.8 trillion in bond holdings to roll off its balance sheet, it will do so at a pace of $100 billion a month.