Here is a good explanation: https://www.brookings.edu/blog/up-front/2021/07/15/what-does-the-federal-reserve-mean-when-it-talks-about-tapering/ https://www.bro

Here is a good explanation: https://www.brookings.edu/blog/up-front/2021/07/15/what-does-the-federal-reserve-mean-when-it-talks-about-tapering/ https://www.brookings.edu/blog/up-front/2021/07/15/what-does... The federal reserves buys bonds / treasures and mortgage backed securities. It has an effect on long term interest rates and mortgages (keeping the interests low).