Like it or not, the “taper” is coming.
The Federal Reserve will wrap up a two-day policymaking meeting this Wednesday, and Fed watchers are obsessing over the timing of when the central bank may begin to slow its bond-buying program.
The policy, known as quantitative easing, entails buying $85 billion in Treasuries and mortgage-backed securities each month, in an attempt to lower long-term interest rates, particularly on mortgages.
Federal Reserve officials have been broadcasting for months that they intend to start winding down the program this year. It’s safe to say that it’s going to happen — if not this week, then in the next three months.
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