Fed Taper Could Be OK

For all the hang-wringing on Wall Street about the Federal Reserve’s expected “taper,” you’d think the central bank was considering a ban on helicopter flights to the Hamptons.

Take a deep breath. For most of the rest of us, the Fed’s “tapering” of its massive money flows into the U.S. economy could actually spell good news.

The “tapering” you may have heard about refers to a gradual easing up on the central bank’s response to the financial collapse of 2008. Beginning in November that year, the Fed began buying up hundreds of billions of dollars’ worth of Treasury bonds—along with dodgy mortgage debt—in exchange for cash that it conjured out of thin air.

CNBC

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.