Well, then to increase the liquidity of the financial market, in popular terms, is to release water. And taper is just the opposite, it is to gradually reduce the scale of asset purchases, and slowly withdraw from q e to recover.
Liquidity can be simply and rudely understood as the Fed used to open the faucet to release water, but now he slowly closes the faucet tightly, and the water released will be less.
For example, maybe he had to invest 10 billion in debt every month, so this month it will be allocated at the rate of 80, and then it may be invested at the scale of 6 billion in the next month. In other words, it is actually released.
But the speed is also a bit slower. Hey, the brother may have to ask, what does this rate hike mean? Hey, raising interest rates means raising interest rates by banks like the Federal Reserve. If the bank's interest rates become higher, people will put their money back in the bank instead.
Circulating investment in the market can also be simply understood as taking a pump directly and pumping water out of the market. Because behind it is state support, once the interest rate is raised, the effect is very obvious.