# As Fed kicks off taper, some investors seek to dial down risk

> The Federal Reserve said it will begin paring its monthly bond purchases this month, with plans to end them later, marking the start of less accommodative policy. The central bank maintained its view that high inflation would prove transitory.

- Date: 2021-11-04 · published 2021-11-04T12:00:00.000Z
- Category: macro · region US · magnitude medium
- Page: https://feedsoft.ai/events/43954-as-fed-kicks-off-taper-some-investors-seek-to-dial-down-risk
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Tighter US monetary policy tends to strengthen the dollar and raise the opportunity cost of holding non-yielding assets, a headwind for dollar-priced commodities and a potential pressure on feed input prices.

## Read by commodity

- DXY: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2020-09-09 | [Dollar and yen rise as tech selloff sends investors to safety \| Financial Post](https://feedsoft.ai/events/51342-dollar-and-yen-rise-as-tech-selloff-sends-investors-to-safety-financial-post.md) | -0.7% | -0.2% |
| DXY | 2022-05-05 | [Dollar surges to 2-decade high as investors seek refuge \| AP News](https://feedsoft.ai/events/8316-dollar-surges-to-2-decade-high-as-investors-seek-refuge-ap-news.md) | +0.7% | -1.2% |
| DXY | 2021-07-27 | [Canadian dollar falls as China stock sell-off spooks investors \| Financial Post](https://feedsoft.ai/events/46272-canadian-dollar-falls-as-china-stock-sell-off-spooks-investors-financial-post.md) | -0.5% | +0.6% |
| DXY | 2019-09-30 | [Rand weaker as investors seek shelter in dollar - Moneyweb](https://feedsoft.ai/events/57360-rand-weaker-as-investors-seek-shelter-in-dollar-moneyweb.md) | -0.2% | -1.4% |
| DXY | 2026-06-01 | [Investors expect US dollar to break higher as Fed battles inflation](https://feedsoft.ai/events/19465-investors-expect-us-dollar-to-break-higher-as-fed-battles-inflation.md) | +1.0% | +1.7% |

## Sources

- reuters.com: https://www.reuters.com/business/fed-kicks-off-taper-some-investors-seek-dial-down-risk-2021-11-04/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.