Taper without tantrum

Fed pivots on policy, but calm reigns

The United States Federal Reserve, led by recently renominated Fed Chair Jerome Powell, shifted its monetary policy stance in its meeting this week. The Fed’s governors announced that the US central bank would accelerate the rate at which it is tapering off its purchases of assets for its balance sheet. Mr Powell also signalled that there was debate in the committee for the first time on how and when the Fed would begin to shrink its vastly expanded balance sheet, thereby withdrawing liquidity from the global economy. This may be some distance in the future, but it is a clear