Commentary On Dec. 15, Federal Open Market Committee Chairman Jerome Powell announced a doubling of its balance sheet taper. While this decision was largely anticipated by the markets, as Powell recently testified before Congress that the FOMC would likely end its balance sheet taper a few months early, Powell seemed a bit nervous. The Fed Chair has every reason to be afraid, as the equity markets are very sensitive to balance sheet tapers and reductions. The Federal Reserve’s dual mandate, as established by Congress, is to promote maximum employment and price stability, not to prop up asset prices. Every time equity prices experience a significant decline, the Fed tends to run to the rescue with lower interest rates or more quantitative easing. The Fed’s behavior suggests and implies that the Fed is far more concerned about stock prices than the economy. Former Fed Chair Alan Greenspan was one of the …