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After 635-Point Sell-Off, Fed Running Out of Options

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The Dow fell by 635 points, Asia followed suit and Europe is expecting losses for up to 6 percent following the downgrade of US debt by ratings agency Standard & Poor’s. Whether the move by S&P can be wholly blamed for the heavy selling of stocks is open to question, but the market is now asking how the Fed will react when it meets today to discuss its response at its monthly meeting.

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