Market history · Central banks ·
The Fed begins to taper its bond purchases
On 3 November 2021 the Federal Open Market Committee announced it would begin reducing its monthly net asset purchases, by $10 billion for Treasury securities and $5 billion for agency mortgage-backed securities, while keeping the policy rate at 0–0.25%.
It was the first step away from the emergency support put in place in 2020. Within months the Fed had accelerated the taper and moved on to raising rates.
The takeaway
Support that is withdrawn gradually can still mark the turn in a cycle.
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