What Is the Taper Tantrum?
5paisa Research Team
Last Updated: 23 Oct, 2024 01:56 PM IST

Content
- Introduction
- What Exactly do We Mean by Taper Tantrum?
- Reasons Why Stock Market Didn’t Fall During the Taper Tantrum
- What is the Significance of Taper Tantrum?
- Why Should you Care?
Introduction
When the Federal Reserve (Fed) announced that it would be reducing its quantitative easing strategy in the future, the term "taper tantrum" was coined to characterize the subsequent spike in Treasury rates in 2013.
According to the Federal Reserve, the speed at which it buys Treasury bonds would be reduced in order to decrease the amount of money it was pumping into the economy. As a result of the news, bond rates shot up, prompting financial journalists to dub it a "taper tantrum".
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