What are The impacts of the Tapering Off The Fed on financial markets?

[Suba]

Tapering Off The Fed is a topic frequently discussed by traders, investors, financial experts, and even central banks from other countries.

Tapering Off The Fed or tapering refers to a policy adopted by the United States central bank, the Fed, where it reduces its previous economic stimulus through its Quantitative Easing program. The Fed purchases asset-backed securities, securities, home equity loans, student loans, bonds, and more, with the aim of preventing inflation, increasing liquidity, and boosting economic growth. The Quantitative Easing program is implemented in monthly stages (not all at once).

The Fed implemented a tapering policy in 2013, 2018, and 2021. Tapering often impacts global financial markets, including the stock market, crypto, and forex.

 

[magnus2022]

This is the first time am hearing about such program. As you said it a kind of hedge against inflation. I think is a very well designed program to help reduce likely economic downturn. I will read up about the program because am learning everything about financial market now.