This is the process by which the Federal Reserve winds down its bond buying program in the US.

Part of the Fed’s stimulus for the US economy has involved printing money and using it to buy government bonds and also mortgage backed securities. This is known as quantitative easing and has been designed to reduce demand for government bonds (Treasuries) by pushing up the price and squashing the yield and releasing funds into the economy. Tapering is the reverse – the Fed buying fewer bonds and printing less money as it perceives that the US economy may be picking up.

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