A taper tantrum refers to a rapid run-up in bond yields based on changes in market expectations for Fed policy. "If we try to force the Fed into the old framework, we will be front-running the Fed. The Fed will not validate such front-running," Duy wrote of Powell's appearances this week before House and Senate committees. "The Fed intends to maintain easy policy until the data pushes it in another direction and the Fed does not expect that to happen for a long, long time." The policy "is what it sounds like - incoming actual data that sees us moving closer to our goals."

Source: Mint February 25, 2021 04:02 UTC