Officials at the Federal Reserve are working to make sure history does not repeat itself.
It has been eight years since the economy witnessed the infamous “Taper Tantrum” when the Federal Reserve hinted that it would reduce its bond purchases and triggered a minor panic in financial markets.
Robert Kaplan, the president of the Federal Reserve Bank of Dallas, warns it is time to start thinking about easing what is known as quantitative easing.
“I’ve been saying pretty consistently for the last few weeks [that] as it becomes clear that we are weathering this pandemic, that it would be wise to begin talking sooner rather than later about adjusting our purchases,” Kaplan told FOX Business’ Edward Lawrence during an interview on “Cavuto Coast to Coast.”
Kaplan comments came after the release of the Federal Open Market Committee’s minutes from their late April meeting. The readout from the April 27th meeting stated that several committee members “suggested that if the economy continued to make rapid progress toward the Committee’s goals, it might be appropriate at some point in upcoming meetings to begin discussing a plan for adjusting the pace of asset purchases.”