The term tapering refers to a monetary policy tool adopted by central banks and coined quite recently. 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. Tapering is the gradual slowing of the pace of the Federal Reserve’s large-scale asset purchases. Tapering does not refer to an outright reduction of the Fed’s balance sheet, only to a. 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. 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. 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. 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. Guide to Tapering and its meaning. We compare it with quantitative tightening, explain its causes, examples, and impact. / ˈteɪ.pə.rɪŋ / us / ˈteɪ.pɚ.ɪŋ / becoming gradually narrower at one end: long, tapering fingers Tapering is the measured reduction of quantitative easing (QE) or other expansionary monetary interventions conducted by a central bank. Tapering reduces the pace of asset purchases without stopping them abruptly. It often signals confidence in economic recovery.