The question has to be asked when will the U.S.Fed. and other worldwide peers, including the BOE and the ECB, who started buying bonds in 2020, will start to pull back on their widespread bond-buying programmes
Tapering
That’s the term Fed officials, ECB and BOE use to describe a plan to reduce their purchasing of bonds gradually, by reducing bond purchases over a certain amount of time. The hope is to wean the economy slowly off the extra stimulus the buying provides to avoid a crash.
Reducing too quickly could derail the economic revival. Fed.officials say they are trying to be as transparent as possible about their plans. Only time will tell!