1

When the Federal Reserve made its first tentative step toward ending its era of extraordinary monetary intervention, it earned a nickname: the taper tantrum. Global financial markets metaphorically bawled like a toddler on news that the Fed planned on “tapering” its stimulus program. That was nearly four years ago. Ever since, the Fed has moved to decrease access to easy money with the caution of a technician defusing a powerful bomb. After raising its interest-rate target above near-zero levels in December 2015, the Fed waited a full year before doing so again, the slowest pace of rate increases in the modern history of the central bank.

As far as I searched, easy money means a condition in which banks and lenders can loan money easier and borrowers can acquire money more easily from lenders. Then 'decrease access to easy money' means to make it difficult to acquire money? and I don't understand the meaning of 'technician defusing a powerful bomb'.

3

The confusion stems from how you divided up the sentence. "With caution" refers to how the Fed has moved, not to money. It might be easier to see by rearranging the sentence:

Ever since, the Fed has moved with the caution of a technician defusing a powerful bomb to decrease access to easy money.

They have moved with extreme caution in adjusting monetary policy.

3

The editorial is saying that access to money was made more difficult by cutting back on stimulus programs. The phrase, "with the caution of a technician defusing a powerful bomb," is metaphor comparing the caution of the Fed in implementing this policy with the caution of a man defusing a bomb.

2

This is a metaphor comparing the Fed to a technician defusing a powerful bomb. A technician defusing a powerful bomb is a person who would be very careful and possibly nervous as well. So it's a way of saying the Fed was being extremely cautious, worried that the economy could explode if they weren't careful.

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.