Discussion Paper

U.S. Interest Rates and Emerging Market Currencies: Taking Stock 10 Years After the Taper Tantrum


Abstract: In 2013, a shift in expectations of market participants for the timing of the tapering of the Federal Reserve's asset purchases, and its ramifications for normalization of U.S. monetary policy, led to sharp increases in longer-term U.S. Treasury yields and volatility in broader financial markets. The episode came to be known as the "taper tantrum" because the strong market reaction came in response to Federal Reserve communications that were largely consistent with market analysts' expectations.

https://doi.org/10.17016/2380-7172.3385

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Provider: Board of Governors of the Federal Reserve System (U.S.)

Part of Series: FEDS Notes

Publication Date: 2023-10-04

Number: 2023-10-04