The Federal Reserve is
contemplating unwinding its quantitative easing program, which at $85
billion in bond buying per month has constituted the single largest
provision of marginal liquidity to global financial markets since this
latest iteration of the stimulus program was launched in September 2012.
Such a move appears imminent – the consensus in the marketplace
is that the first step in tapering back quantitative easing will be
announced at the conclusion of the Fed's September 18-19 FOMC policy
meeting.
This prospect has roiled global stock and bond markets in recent
months, and in response to the increased volatility, the Fed has sought
to reassure investors that it would continue to max out its other (main,
in fact) policy stimulus tool – control over the level of benchmark
interest rates – for years to come. (more)
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