Fed’s Bostic Expects Markets to Absorb Taper ‘Pretty Smoothly’

The video discusses Atlanta's role as a voting member of the Open Market Committee and its potential influence on market interest rates. It questions whether changes in QE purchases would significantly impact the market, suggesting that the economy is strong enough to absorb such changes smoothly. The asset purchases are viewed as an insurance policy that may no longer be necessary, indicating confidence in the economy's continued growth.

In what way does the speaker describe the current state of the economy?

What does the speaker mean by asset purchases being an 'insurance policy'?