No taper tantrum

India must address risks to financial stability

It is now clear that the US Federal Reserve is considering reducing the pace of its asset purchase. Fed Chairman Jerome Powell in his much-anticipated address at the annual Jackson Hole symposium last week said several members of the Federal Open Market Committee (FOMC), including he himself, were of the view that the economy had evolved as expected, and it could be appropriate to start reducing asset purchase this year. The next FOMC meeting is scheduled in September, though it is not clear at this stage as to when the Fed will start tapering and at what pace. In any