Fed dodging another taper tantrum
The primary news from the Fed meeting yesterday was to clarify the likely timing of reducing and then ending the current QE (quantitative easing, or bond buying) program. Fed Chair Powell indicated that (barring any big surprises) the tapering would begin at the next FOMC (Federal Open Market Committee) meeting in early November and aim to be completed (bond buying would end) by the middle of 2022. This would be a somewhat quicker move to end QE than occurred previously, but markets seem prepared for this and thus unlikely to have a “taper tantrum” again.