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What is the Fed taper? This Is How the Federal Reserve Withdraws Stimulus
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Edouard Wemy, Assistant Professor of Economics, Clark University._____
Tapering refers to the Federal Reserve (Fed) 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 Fed first adopted this policy during the 2008 financial crisis.
Normally, when a central bank wants to reduce the cost of borrowing for
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