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  "documentTitle": "What if the ECB raises its policy rates? Roland Berger Institute",
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      "text": "The taper tantrum holds crucial lessons for the ECB as it considers a more restrictive monetary policy: Forward guidance is essential to developments on financial markets, which spill over to the real economy.",
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      "text": "MARKET YIELD ON U.S. TREASURY SECURITIES AT 10-YEAR CONSTANT MATURITY [%]",
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      "text": "In unprepared remarks in a congressional hearing on May 22, 2013, then-Fed Chair Bernanke mentioned the idea of tapering down bond purchases for the first time, saying \"If we see continued improvement, and we have confidence that it is going to be sustained, in the next few meetings we could take a step down in our pace of asset purchases.\"",
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      "text": "The market was rattled by these remarks, with 10-year yields rising dramatically, as investors feared that the market would crumble if the FED discontinued or lowered its asset purchases which had increased its balance sheet from USD 1 trillion to USD 3 trillion since 2008.",
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      "text": "The extreme bond market reaction at the time to a mere possibility of less support in the future underscored the degree to which bond markets had become dependent on Fed stimulus.",
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      "text": "Source: Federal Reserve",
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      "text": "The Fed's so-called taper tantrum in 2013 bears important lessons for the ECB's communication strategy when it comes to a turnaround in monetary policy",
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