Our concerns at that time reflected questions about how the financial markets and the economy would respond to the shock of a decline of more than one-fifth in stock prices in one day, and whether monetary policy alone could stabilize the system.
In the normalizing of its policy, just as when loosening policy, the Federal Reserve will take account of how its actions affect the global economy. The taper tantrum episode notwithstanding, most EMEs have generally weathered the winddown of our asset purchases reasonably well so far.