US STOCKS-Wall St falls on Fed officials' comments, Washington worries

Mon Sep 23, 2013 4:42pm EDT
 
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* Positive German, Chinese data outweighed by Fed uncertainty

* Fed's Dudley says Fed could begin tapering stimulus this year

* Apple shares jump after most successful iPhone launch ever

* Indexes down: Dow 0.3 pct, S&P 0.5 pct, Nasdaq 0.3 pct

By Caroline Valetkevitch

NEW YORK, Sept 23 (Reuters) - U.S. stocks declined for a third straight session on Monday as Federal Reserve officials suggested the Fed could still begin scaling back its stimulus later this year.

A looming political deadline in Washington added to pressure on the market, where losses over the past three sessions have erased the S&P 500's 1.2 percent gain last Wednesday when the Fed decided against reducing its economic stimulus measures.

William Dudley, president of the Federal Reserve Bank of New York, said in a speech the timeline that Fed Chairman Ben Bernanke articulated in June for scaling back the central bank's stimulus measures is "still very much intact," as long as the economy keeps improving.

At a separate event, Dallas Fed President Richard Fisher warned that by standing pat the Fed had hurt its credibility and said he had urged colleagues to support a $10 billion reduction in the Fed's bond-buying program at last week's meeting.   Continued...