As the Federal Reserve’s money printer quiets, markets shake
By STAN CHOE
AP Business Writer
NEW YORK (AP) — The shakiness hitting Wall Street isn’t just because the Federal Reserve’s money printer that’s supporting markets is slowing, but that it may soon go into reverse. With inflation high and the economy strengthening, the Fed has warned investors the ultra-easy conditions it’s created for them in recent years are likely to disappear. It’s on track to raise interest rates earlier and more aggressively than expected, and it may also soon start letting go of some of the trillions of dollars of bonds it’s bought since the pandemic began. While investors have geared up for that first possibility, the second came as a big surprise.
