US Fed tapering

Understanding the new term from the US economic media is can be mind confusing and somewhat exaggerate the market reactions.  I remember from the last term : financial cliff.  It was exaggerated by media that the event brings a major effects to the US economy that it is going to end and fall into ravine if not properly handled by the Feds.  But soon after the Fed released the outcome regarding this financial cliff, the market reacts as usual.  I mean is that there is no economic disasters happened just a normal up and down market reactions.

Now comes the term : tapering.  I am a little bit confused and could not understand at first. But soon after I read information about this on the net, it is only a term refering to the timeline in reducing of Feds stimulus to the US economic.  I view it as the Fed would reduce it bond buying program at certain period of time until the economy can stand on its own feet with minimal help from the Fed. The market would then come back to traditional activity which is stimulated by supply and demand, growth and so on. The announcement of  Fed planning for tapering ignites speculations from forex traders. So, trade carefully.