The Fed Plans to Taper. Here’s What That Means. | WSJ

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The Federal Reserve says it will accelerate the wind-down of its bond-buying program, the biggest step the central bank has taken in reversing its pandemic-era stimulus. Here’s how tapering works, and why it sends markets on edge. Photo illustration: Adele Morgan/WSJ

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47 COMMENTS

  4. I can wrap up very quickly as I am investing and sharing everything with my boyfriend as I invest in Goldman Sachs& JPMorgan.Thanks and I do not want to talk about it anymore.Have an excellent Evening!

  7. Even if bond yields are increasing while stock prices are falling, the markets remain skeptical that the Federal Reserve will stick to its goal to raise interest rates until inflation is under control. As I'm still debating whether to sell my $401,000 worth of stocks, what is the best way to benefit from the present bear market?

  9. inflation is inevitable, it was caused by the (rapid) increase in the money supply
    Inflation is not an undesired effect, it is an effective tool to create poverty.
    Governments are managing a policy of increasing poverty, destroying the middle class, and creating moral hazards to benefit cronies

  10. Looking back now… inflation has continued as supply issues have confounded by war and energy especially. The Fed is slowly raising rates, with some QT plans and inflation hasn't slowed yet.

  13. I have an idea for a reality show, we all know there's a lot of closet case serial killers out there, wouldn't it be nice if we let the serial killer wannabes fulfill their fantasies by executing pedophiles on pay-per-view. I wonder how many people would watch pedophiles being murdered by serial killer wannabes ? maybe I'm just ahead of my time ?

  20. Yep, let's just all believe once the supply chain issues are resolved, companies will cheerfully lower their prices again. And then we all grab each other by the dicks and sing f*ing kumbaya.

  22. This is a correct strategy, but WHY is the Fed buying corporate bonds of successful giants like Apple and Amazon? That policy was supposed to help STRUGGLING firms!

  25. Planning to do something has no effect – neal a.if we were really stupid…we would print money,keep interest rates low,and endlessly raise the debt limit,oh,and of course continue spending.then , when switching to a dangerous digital currency – apply austerity measures, and screw everyone – if we were really stupid. – neal a

  28. It's unlucky that we talk only about infaltion and not deflation. Even is infaltion fell to 0%, prices would still stay this high – they would just stop growing, not falling. For that we would need defaltion which is not happening..

  32. If money was stable there would be no inflation no matter how bad supply chains are. It's physically impossible. The fact is that politicians would rather see inflation than unemployment and a lower stock and bond market and so the Fed is doing their bidding by adding excess money to the system. Stocks, Bitcoin, real estate… it's all asset inflation. Excess money going into speculation.

  40. The ecomomy is strong!
    But were are in debt
    I said strong!
    But we literally don't even have enough money we as acountry would need to liquidate all assets to pay off the debt right now
    Strong mfr!

  41. So you mean you have to face inflation like like paying interest on the debt you owe that sounds like something as a responsible adult you would be willing to do no?

  45. Oh my god, it was falling much more in February without any words of taper, inflation or whatsoever! It was hitting 3900 then flew to 3600 like it should. Just taper this nonsense already

  46. Inflation and currency devaluation are backdoor ways for governments to steal peoples' hard earned money. Governments continue to spend in ways that help them retain power (disguised as puvlic good & social justice) whilst rewarding themselves, their kin and cronies. All at the expense of tax paying citizens. When the state cannot raise taxes, it prints money and devalues the currency. Raising taxes and devaluing currency has the same effect of allowing the state to continue spending but reduces citizens' purchasing power. Quantitative easing is just another name for state sanctioned theft/ robbery.

  47. The taper won't last long, just like last time. The credit markets will quickly freeze up when no one else is wanting to buy these bonds. The Fed will have to resume its QE and keep rates lower. We are basically on the same path as Japan and Sweden. Would not be surprised if during the next cycle down, we go to negative interest rates like in Japan and Sweden.

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