Three things you're not hearing about the coming taper tantrum

Fed spokesmen are talking about talking about talking about tapering asset purchases, and investors are fearing another taper tantrum like that of 2013. First, recent statements are not new information: the April FOMC minutes show they are already talking. Second, the 2013 tantrum was set off by Bernanke warning of an imminent policy change, not just the beginning of debate about it. Third, in 2013, the 10-year yield had already risen from when QE3 began to when Bernanke first hinted about tapering, and only continued to rise after. When tapering was begun, yields fell to below where they were when Bernanke spoke. Equities, as a proxy for economic growth, had only a small and brief correction after Bernanke's warning. They rallied through the onset of implementation and after, suggesting that tapering did nothing to harm economic growth.