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Opinion

Taper Is Bond Bullish

Taper Is Bond Bullish
A specialist works at his post on the floor of the New York Stock Exchange, as a television screen shows the decision of the Federal Reserve to end quantitative easing, on Oct. 29, 2014. AP Photo/Richard Drew
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Commentary

Most investors believe when the Federal Reserve tapers its balance sheet, it means interest rates are going to rise. Yet, something peculiar happens when the Fed reduces its monetary support for the economy, as interest rates tend to fall. At the end of quantitative easing 3 in 2014 and later in 2017, interest rates fell as the Fed reduced its asset purchases.

Steven Van Metre
Steven Van Metre
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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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