There is risk that Federal Reserve Chair Janet Yellen’s commentary on Capitol Hill sparks a ‘taper tantrum’ in markets.
The phrase refers to the spike in bond yields in 2013 when former Fed Chair Ben Bernanke signaled the end of quantitative easing.
A similar situation may be shaping up with regards to the unwinding of the Fed’s balance sheet.
Grant Bughman, sr. equity specialist at UBS Asset Management thinks Yellen will be methodical in her commentary and stressed the importance of focusing on a long-term investing strategy.
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