There was no let-up in the flight from stocks and bonds as traders reacted to news that the Federal Reserve could end its massive bond-buying program as next year and as China's manufacturing slowed.
Chairman Ben Bernanke says the Federal Reserve could scale back its $85 billion in monthly bond purchases later this year if the economy continues to improve.
The Federal Reserve right now is debating whether its economic stimulus program should continue or be curtailed, and their decision may have a deep impact on growth.
Several Federal Reserve policymakers this month favored slowing the Fed's efforts to maintain record-low long-term interest rates as early as summer -- if the economy showed strong and sustained growth. But those officials appeared at odds over what evidence would demonstrate such gains.
The Federal Reserve says some 96,000 borrowers who received checks to compensate them for wrongful foreclosures on their mortgages will be getting an additional check to correct for errors in the initial payment.
Strong auto sales, better hiring and a continued housing recovery helped the U.S. economy grow in January and February throughout the country, according to a survey released Wednesday by the Federal Reserve.
The Federal Reserve says growth "paused" in recent months and reaffirmed its commitment to boost a sluggish U.S. economy by keeping borrowing cheap for the foreseeable future.