Economy

The Fed is scaring markets with the triple threat of policy tightening

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Investors have been preparing for the Federal Reserve to start hiking interest rates. They also know the central bank is cutting the amount of bonds it buys each month. On top of that, they figured, eventually, the tapering would lead to a reduction in the nearly $9 trillion in assets the Fed is holding.

What they didn’t expect were all three things happening at the same time.

But minutes from the Fed’s December meeting, released Wednesday, indicated that may well be the case.

The meeting summary showed members ready to not only start raising interest rates and tapering bond buying, but also being prepared to engage in a high-level conversations about reducing holdings of Treasurys and…



Source cnbc.com

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