Stocks retreat as Fed grows more cautious

NEW YORK (AP) — Stocks and interest rates are tumbling with investors worldwide growing concerned about the health of the U.S. economy after the Federal Reserve said the recovery was slowing down.

U.S. investors are following the lead of overseas stock markets today, which are falling sharply.

The Fed said Tuesday it will start buying government bonds. The goal is to try to cut interest rates on mortgages and corporate loans, on the hope that it will increase borrowing and help the economy grow faster.

The Dow Jones industrial average is down 145.63, or 1.4 percent, at 10,499.98. The Standard & Poor’s 500 index is down 14.61, or 1.3 percent, at 1,106.45, while the Nasdaq composite index is down 48.20, or 2.1 percent, at 2,228.97.