US Federal Reserve Board chairman Jerome Powell testifies on the Fed’s response to the pandemic on June 22. Unlike in 2013, when a surprised market went into a “taper tantrum”, this time, Powell has been carefully preparing the ground. Photo: AFP
US Federal Reserve Board chairman Jerome Powell testifies on the Fed’s response to the pandemic on June 22. Unlike in 2013, when a surprised market went into a “taper tantrum”, this time, Powell has been carefully preparing the ground. Photo: AFP
Tai Hui
Opinion

Opinion

Macroscope by Tai Hui

Forget the 2013 ‘tantrum’ playbook as the US Fed prepares to taper its bond buying

  • In 2013, Treasury yields fell as tapering began, leaving bond and corporate debt markets higher. This time, US bond yields are likely to rise and could dampen returns in a stock market already jumpy from overheated valuations

US Federal Reserve Board chairman Jerome Powell testifies on the Fed’s response to the pandemic on June 22. Unlike in 2013, when a surprised market went into a “taper tantrum”, this time, Powell has been carefully preparing the ground. Photo: AFP
US Federal Reserve Board chairman Jerome Powell testifies on the Fed’s response to the pandemic on June 22. Unlike in 2013, when a surprised market went into a “taper tantrum”, this time, Powell has been carefully preparing the ground. Photo: AFP
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