The US Federal Reserve has agreed to start reducing emergency stimulus to the economy due to the pandemic, commonly known as tapering, is in mid-November or December, but what does this term that has sounded so much in recent days mean?
The famous taper is the gradual slowdown in the pace of large-scale asset purchases by the Federal Reserve. The Fed used asset purchases to maintain economic stability when COVID-19 shut down the US economy in 2020. Since June 2020, the Fed has been buying at least $120 billion in bonds each month.
and that is During the Federal Reserve’s September meeting, Chairman Jerome Powell noted that the November meeting It could set a timetable for lowering taxes in the North American country.
According to the Fed estimates, monthly reductions in the pace of asset purchases will be $10 billion. for Treasury securities and $5 billion for the agency’s mortgage-backed securities.
Mixed shutdown on Wall Street
Given the imminent arrival of “tapering”, Wall Street had a mixed shutdown on Wednesday after the release of US inflation data.Which was higher than what the experts imagined.
in September, The US inflation rate rose to 5.4% at an annual rate, exceeding estimates by a tenth of a percentage point. This was the fifth consecutive month that inflation exceeded 5%.
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