Stocks Lower Following Hawkish Comments from Kansas City Fed President

Equity markets declined on Tuesday afternoon following comments from Kansas City Fed President Esther George. George, viewed as a hawk, thinks tapering of QE is the likely next step in Fed monetary policy.

In her view, this would begin to "lay the groundwork for a period when markets can prepare to function in a way that is far less dependent on central bank actions."

This tapering would be a slowing of policy easing similar to applying less gas to a pedal rather than stepping on the brake, said the Kansas City President. She also expressed caution about the dangers of waiting too long to tighten.

Stocks hit session lows immediately following the comments, extending losses, with plenty of red seen in the technology and financial sector. Bank of America Corporation (NYSE: BAC) and Citigroup (NYSE: C) traded lower, joining tech stocks like IBM (NYSE: IBM) and Hewlett-Packard Company (NYSE: HPQ).

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