Tapering: Prior to May of 2013, “tapering” was a term most commonly heard in athletics training. On May 22, U.S. Federal Reserve Chairman Ben Bernanke stated in testimony before Congress that that Fed may “taper” the bond-buying program, called quantitative easing (QE), in the coming months. The expectation in 2013 is that the Fed will gradually bring its current pace of $85 billion per month in bond purchases to zero by the middle half of 2014.
Source: about.com
Tightening Cycle: All credit cycles go through periods of time in which funds are relatively easy to borrow. A tightening cycle is a period characterized by lower interest rates, lower lending requirements and an increase in the amount of available credit. These periods are followed by a contraction in the availability of credit. During the tightening cycle, interest rates climb and lending requirements become stricter. The contraction period continues until risks are reduced for lending institutions, at which point the cycle begins again.
Sources: Investopedia, Business Dictionary
Trade Deficit: Occurs when a country’s imports are greater than its exports. It also represents an outflow of domestic currency to foreign markets. A trade deficit is an economic measure of a negative balance of trade which isn’t necessarily problematic because it often corrects itself over time. However, the U.S. trade deficit has been growing in the U. S. in recent decades, raising concern among some economists.
Source: Investopedia