The Federal Reserve is scaring markets with the triple threat of policy tightening
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. They also figured that eventually, the tapering would lead to a reduction in the nearly $9 trillion in assets the Fed is holding.
What they didn’t expect was 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...