Why in news?
The manner in which the US Federal Reserve (Fed) is easing the financial market is suggestive of the taper tantrum trends of 2013.
What is the taper tantrum of 2013?
Quantitative easing involves
- central bank purchasing longer-term securities from the open market in order to increase the money supply,
- encouraging lending and investment by interest rate cuts.
What was the impact?
What is the apprehension now?
What is the likely impact?
Source: Business Line, Bloomberg