Wall Street balks as Fed signals party’s ending, but is it?

By STAN CHOE
AP Business Writer

NEW YORK (AP) — Wall Street is worried about the Federal Reserve pulling back its massive support for financial markets. The head of the central bank said this week that it may halt the bond-buying program meant to lower long-term interest rates sooner than expected. That would open the door to an earlier start for the Fed to raise short-term rates. Such low rates have been a big reason for the S&P 500’s surge since early 2020, and measures of fear are on the rise in the market. But history suggests stocks aren’t always losers when the Fed pulls back its support.