Home » Stock market may be hit as Fed reduces stimulus: Bank of America

Stock market may be hit as Fed reduces stimulus: Bank of America

by MD Samsuzzaman Siyam

Traders work on the floor of the New York Stock Exchange.

NYSE

A so-called taper tantrum could be looming as central banks reduce fiscal stimulus, Bank of America has warned.

Tapering is when governments reduce financial stimulus or quantitative easing (QE), often causing stock prices to fall. The phrase taper tantrum was coined in 2013 when the Federal Reserve said it would gradually reduce — or taper — the financial stimulus put in place after the 2008 financial crisis, causing soaring Treasury yields and stock market jitters.

In a note Friday, the BofA strategists said this tapering had already begun and was “bad news” for stocks, in particular “FAAMGs”: Facebook, Amazon, Apple, Microsoft, and Alphabet‘s Google.

But they also highlighted some “good news” on the horizon.

Source by [author_name]

You may also like

Leave a Comment

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Privacy Policy