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Fed surprises, sticks to stimulus as it cuts growth outlook
Reuters: The U.S. Federal Reserve defied investor expectations on Wednesday by postponing the start of the wind down of its massive monetary stimulus, saying it wanted to wait for more evidence of solid economic growth.
Investors responded by propelling U.S. stocks to record highs and driving down bond yields. Yields on U.S. Treasury debt had risen over the summer on expectations the Fed would cut back its $85 billion a month in bond purchases that have been the cornerstone of its efforts to spur the economy.
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