You might have been coming across this term called tapering lately. Do you know what it is?
The Fed used asset purchases to maintain economic stability when COVID-19 shut down the U.S. economy in 2020. Since June 2020, the Fed has been buying at least $120 billion in bonds each month.
During the September Fed Meeting, chair Jerome Powell said the November meeting could establish a tapering timeline. In the subsequently released FOMC minutes, the Fed noted that “gradual tapering” could begin as early as mid-November.
Watch the video above to know more.