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Markets differentiated fairly between countries during taper tantrum: Fed's Dudley
[PARIS] Markets discriminated fairly between different countries according to the health of their financial systems during the "taper tantrum" surge in volatility last year, a top US Federal Reserve official said on Friday.
Many financial markets - especially in emerging countries - were hit hard in the spring of 2013 by the unexpected suggestion from then Fed Chairman Ben Bernanke about the prospect of the Fed scaling back its quantitative easing.
The programme eventually concluded with end of its monthly bond purchases last month.
"The lesson that I took away from the taper tantrum was a quite positive one," said William Dudley, president of the New York Federal Reserve Bank, who was speaking at a conference of central bankers in Paris.
"After the initial round of turbulence the market was quite discriminating across countries based on countries with good sense macroprudential policies and those with less good sense."