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                 US Stocks Recover Some Ground After Sharp Drop

   by VOA News

   Most U.S. stock market indexes recovered some ground in Friday's
   morning trading after two days of sharp drops.
   The plunge was blamed on news that the U.S. central bank may reduce
   efforts to stimulate the recovering U.S. economy, and concerns about
   China's economy .
   Friday saw mixed results on Asian and European markets, with Japan's
   Nikkei up sharply while Hong Kong's Hang Seng posted losses.
   In the midst of the financial crisis in 2008, the U.S. Federal Reserve
   tried to increase economic growth and reduce unemployment by cutting
   short term interest rates nearly to zero.  The Fed later tried to also
   cut long term interest rates with a program of buying $85 billion worth
   of securities a month.
   Fed Chairman Ben Bernanke said when it appears that a strengthening
   economy no longer needs so much support, the bank would gradually
   reduce its purchase program.  Improving economic reports, particularly
   unemployment, mean easing the stimulus could come later this year.
   Low interest rates help economic growth by making it cheaper for
   businesses to borrow the money they need to buy new equipment, expand
   factories, and hire new people.  But a stimulus program that goes on
   too long could overshoot and spark inflation, which could hurt the
   economy.
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   [1]http://www.voanews.com/content/us-stocks-recover-some-ground-after-s
   harp-drop/1686587.html

References

   1. http://www.voanews.com/content/us-stocks-recover-some-ground-after-sharp-drop/1686587.html