Tapering is a controlled and systematic form of monetary policy whereby the central bank either reduces or phases out the number of assets it purchases each month. This disambiguation page lists articles associated with the title Tapering. If an internal link incorrectly led you here, you may wish to change the link to point directly to the intended article. Guide to Tapering and its meaning. We compare it with quantitative tightening, explain its causes, examples, and impact. Tapering is when you cut back training in the final stretch before a race, usually over a few days to three weeks depending on the event. The meaning of TAPER is to become progressively smaller toward one end. How to use taper in a sentence. If investors believe that tapering means interest rate hikes are coming soon, they may adjust their portfolios accordingly. However, the Fed has emphasized that tapering does not automatically signal imminent rate increases. / ˈteɪ.pə.rɪŋ / us / ˈteɪ.pɚ.ɪŋ / becoming gradually narrower at one end: long, tapering fingers Tapering is the reversal of quantitative easing policies, implemented by a central bank and intended to stimulate economic growth. Tapering refers specifically to the reduction of central bank. In medicine, tapering is the practice of gradually reducing the dosage of a medication to reduce or discontinue it. Generally, tapering is done to avoid or minimize withdrawal symptoms that arise from neurobiological adaptation to the drug. [1][2] The Federal Open Market Committee announced it is beginning to taper! But wait—what exactly is tapering? Tapering means gradually reducing the pace of the Fed’s securities purchases.