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What is the Fed taper? An economist explains how the Federal Reserve withdraws stimulus from the economy

  • Written by: Edouard Wemy, Assistant Professor of Economics, Clark University
What is the Fed taper? An economist explains how the Federal Reserve withdraws stimulus from the economyWhat goes up must come down.iStock/Getty Images Plus

Tapering 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...

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