Thornburg Investment Management Portfolio Manager Lon Erickson in Reuters

Analysis: As Fed kicks off taper, some investors seek to dial down risk

NEW YORK, Nov 4 (Reuters) – The Fed’s well-telegraphed taper announcement has done little to soothe the nerves of some investors, who remain on edge about stubbornly persistent inflation and are looking to trim risk as they prepare for rockier times.

The Federal Reserve on Wednesday said it will begin paring back its monthly bond purchases this month with plans to end them in 2022, marking the beginning of its tightening cycle. But it stuck to its long-held view that high inflation would prove “transitory” and likely not require a fast rise in interest rates, prompting investors to call it a “dovish taper.”

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