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Taper Tantrum

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Taper Tantrum
A screen displays a statement by Federal Reserve Chair Jerome Powell following the Federal Reserve's announcement as a trader works on the trading floor of the New York Stock Exchange (NYSE) in New York City on Sept. 22, 2021. Brendan McDermid/Reuters
Steven Van Metre
Updated:
Commentary

On Sept. 22, Federal Reserve Chair Jerome Powell suggested during the Federal Open Market Committee (FOMC) press conference that the FOMC board was very close to tapering its purchases of Treasury and mortgage-backed securities. Initially, bond prices rallied on the news, then were slammed lower over the following two days as investors changed their view on how a balance sheet taper might affect bond prices.

Steven Van Metre
Steven Van Metre
Author
Steven Van Metre, CFP, designs and manages unique investing strategies. He has a YouTube show where fans across the globe tune in to hear his thoughts on the global economy, monetary policy, and the markets.
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