Fed Tapering: What Is It, and Should Investors Prepare for a Taper Tantrum?

Fed Tapering: What Is It, and Should Investors Prepare for a Taper Tantrum?

The Federal Reserve has started dropping hints it’s going to begin tapering the quantitative easing that has been going on since March 2020 in response to the COVID-19 pandemic and subsequent economic shutdown.

We’ll explain how tapering works and give some historical context for the last time the Fed tapered — including a breakdown of the “taper tantrum” that followed — and what investors may want to consider in preparing their portfolios.

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