What caused people to sell their stocks and buy bonds?
A. Inflation.
B. Risk of a recession.
C. An announcement from the government stating inflation is less important than a recession.
D. High interest rates.
E. Lack of credit.
In lines 5-8 the author states that the Fed gave a warning which triggered people to dump stocks and buy bonds. There was no lack of credit (in fact there was the opposite) and interest rates were the lowest in 41 years.