Market check-in: Why interest rates matter

Is it Taper Tantrum déjà vu? Sure feels that way!

The sudden return of stock market volatility in recent weeks seems like a repeat of the May 2013 Taper Tantrum, when the U.S. Federal Reserve (the Fed) signaled its intention to “taper” its asset purchases. Stocks went down, bond yields rose sharply, and credit spreads widened. It was a trifecta of unwanted correlations among the major asset classes.