economics
tapering
The gradual reduction in the pace of central bank asset purchases under quantitative easing programs, signaling a shift toward tighter monetary policy.
Example
“The Fed began tapering its $120 billion monthly bond purchases by $15 billion per month in November 2021.”
Memory Tip
TAPERING = slowing down QE. Like turning off a faucet gradually. Markets often react badly.
Etymology
TAPERING (gradually reducing, narrowing). Gradually TAPERING (reducing) bond purchase programs.
Common Misspellings
tapperingtapringtapperring
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