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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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