What is the Fed taper? An economist explains
- Written by Edouard Wemy, Assistant Professor of Economics, Clark University
What goes up must come down.iStock/Getty Images PlusTapering refers to the Federal Reserve policy of unwinding the massive purchases of Treasury bonds and mortgage-backed securities it’s been making to shore up the economy during the pandemic.
The unconventional monetary policy of buying assets is commonly known as quantitative easing. The...